FRANKFURT: The European Central Bank will keep a close eye on the risks surrounding the outlook for inflation in the euro zone, it said in its monthly bulletin on Thursday, stressing that it stands ready to do more if necessary.
As usual, the editorial of the bank's bulletin was virtually identical to its main policy statement, read out by ECB President Mario Draghi last Thursday when the ECB decided to cut its main interest rate yet closer to zero.
"The Governing Council, taking into account the measures decided on 4 September, will continue to closely monitor the risks to the outlook for price developments over the medium term," the ECB said in its monthly report.
"In this context, the Governing Council will focus in particular on the possible repercussions of dampened growth dynamics, geopolitical developments, exchange rate developments and the pass-through of the adopted monetary policy measures."
The ECB also last week launched additional measures to boost lending, pledging to buy asset-backed securities and covered bonds from banks to make it easier for them to issue loans. If all its measures fail to boost inflation, it could yet do more.
"Should it become necessary to further address risks of too prolonged a period of low inflation, the Governing Council is unanimous in its commitment to using additional unconventional instruments within its mandate," the statement said.
Below is a list of articles and special sections the bulletin contains.
The articles can often shed light on the ECB's thinking about key issues and give an insight into the type of analysis the bank uses to support its policy decisions.
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