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(CEP News) - The European Central Bank (ECB) will use alternative monetary policy once rates reach the so called "floor," according to ECB Governing Council Member Jurgen Stark speaking in Siegen, Germany on Wednesday.
"We will decide about the remaining moderate room for maneuver on interest rates" on May 7, said the central banker. "At the same time we will make a decision about additional non-standard measures, which we will implement when the lower interest-rate limit is reached." Although the ECB continues to have moderate room to lower interest rates, one must keep in mind the limitations of monetary policy, said the central banker who stressed that the Anglo-Saxon monetary policy model may not be appropriate for Europe. He also said that there is only a very low risk of deflation in the euro zone, and that there were signs that the global downturn easing. The current economic crisis was not as bad as in the Great Depression, he added. By Erik Kevin Franco,
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; edited by Nick Say,
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