MILAN (Reuters) - The European Central Bank could use a range of tools if called on to calm markets and is prepared to act if needed, Bank of Italy Governor Ignazio Visco told the Financial Times.
“I don’t think there should be any doubt the central bank can do things if price financial stability puts price stability at risk. There will always be things the bank can do,” Visco was quoted on Friday as saying.
When asked if the ECB might undertake a third Long Term Refinancing Operation - cheap loans the ECB has offered to euro zone banks to help them in the crisis - Visco said one should “always be prepared”.
“We will see what happens and then decide accordingly. At the moment there is no liquidity problem so there is no need for another LTRO.”
Reporting by Lisa Jucca; editing by Andrew Roche