RTTNews - Tuesday, European Central Bank Governing Council member Christian Noyer said the central bank must be ready to absorb excess liquidity as soon as necessary.
Speaking to reporters in Paris, Noyer said, What is important for us is to be ready to withdraw liquidity gradually, at the appropriate pace when the time comes.
He added that mopping up liquidity is not an immediate concern of the ECB. Today there is no need to start or even to prepare for an imminent start to such an operation, he said.
Noyer, who is also governor of the Bank of France declined to comment on ECB's intentions on short-term interest rate. In general, he said monetary policy should support economic recovery without hurting price stability. Noyer noted that the ECB's key rate is appropriate.
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