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Bundesbank ready to support ECB action if it is needed: Sources

Rune Johansen | Photolibrary | Getty Images

The Bundesbank is ready to support European Central Bank policy action if it is needed and this is not new, two Bundesbank sources said on Tuesday.

Policymakers are looking at all relevant data, and inflation forecasts for 2016 are important but not the only decisive figure, the sources said.

ECB President Mario Draghi said last Thursday the bank is ready to take action next month to boost the euro zone economy if updated inflation forecasts merit it.

Read MoreEuro rise 'cause for serious concern': Draghi

"We have always said that we are willing to act if this is really needed," a high ranking Bundesbank source said. The second source at the German central bank confirmed this.

Earlier, The Wall Street Journal, citing a person familiar with the matter, reported that the Bundesbank was willing to back an array of stimulus measures from the ECB next month, including a negative rate on bank deposits and purchases of packaged bank loans if needed to keep inflation from staying too low.

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