Economics
ECB’s De Cos Says Deflation Risk Warranted More Stimulus
- Bank of Spain Governor De Cos speaks in interview in Madrid
- Capital key is “not a constraint” on bond-buying for now
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Fears of deflation justified the European Central Bank’s decision to ramp up its emergency bond-buying program, according to policy maker Pablo Hernandez de Cos.
“Deflationary risks have increased and that’s one of the reasons the European Central Bank is taking the action it is taking -- to ensure that risk doesn’t materialize,” the Governing Council member and Bank of Spain head said in a Bloomberg News interview in Madrid. “I’m among those who think that this crisis is essentially disinflationary, in the sense that some of the problems we had with low inflation are accumulating.”