Coeuré: ECB open to using all tools on inflation

European Central Bank board member Benoît Coeuré said Tuesday the bank is open to using any of the mechanisms at its disposal if it thinks more needs to be done for inflation to reach its medium-term target, including the possibility of lowering interest rates or adjusting its asset-buying program.

The discussion on the possibility of further monetary stimulus began at last week's policy meeting, and is bound to be taken up at the December meeting, he told students at Mexico's ITAM university.

If the ECB considers that inflation will take longer to return to the medium-term target, further policy action would be warranted, he said, without saying which might be a preferred action.

"We want to be sure we use the right instruments," Mr. Coeuré said.

Under a program launched in March, the ECB buys about EUR60 billion ($66 billion) a month in mostly government bonds to raise the money supply and boost lending and spending. The bond-buying facility, known as quantitative easing or QE, is intended to run at least through September.

The European Central Bank last week left interest rates unchanged, paying a negative 0.2% on overnight deposits, or effectively charging banks to store money at the central bank to encourage them to lend to the private sector. The ECB's key lending rate is 0.05%.