Economics
ECB Must Act to Fend Off Deflation, Bank of Spain Official Says
- Chief economist says whole bloc is at risk, not just Spain
- Longer-term the ECB should aim for average inflation targeting
Oscar Arce
Source: Banca de EspanaThis article is for subscribers only.
The European Central Bank must introduce additional monetary policy stimulus in December to stave off the risk of deflation in the euro zone, the Bank of Spain’s chief economist said.
“We know that in order to ensure such a risk doesn’t materialize, we must act swiftly and forcefully,” Oscar Arce, the Spanish central bank’s director general of economics, said in an interview in Madrid on Tuesday. The prospect of an entrenched decline in prices stalks the entire currency bloc and not just Spain, he said.