October 9, 2013 / 7:06 PM / in 4 years

ECB's Coeure: no need for LTRO now, still have rate cut option

GENEVA (Reuters) - European Central Bank policymaker Benoit Coeure said on Wednesday he saw no need for the ECB to act by launching a new long-term loan measure (LTRO) now, as money market rates are not rising.

Benoit Coeure, executive board member of the European Central Bank (ECB) poses for a photo after an interview with Reuters in Frankfurt February 26, 2013. REUTERS/Ralph Orlowski

Market rates moved higher over the summer on expectations the U.S. Federal Reserve would start unwinding its stimulus. They subsided after the Fed delayed a reduction in its bond purchases but the ECB is watching them closely, concerned that a sustained rise could threaten the euro zone’s fragile recovery.

Asked what the ECB could do if the euro zone’s recovery falters, Coeure said: “we still need low rates to protect (the) recovery ... we still have the possibility to cut rates and we’ve been clear on that.”

Coeure was answering questions after giving a lecture at the International Center for Monetary and Banking Studies in Geneva.

Reporting by Emma Farge; Writing by Paul Carrel

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