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ECB's negative rates not main policy instrument: Coeure

The European Central Bank (ECB) headquarters is pictured in Frankfurt, Germany, September 3, 2015.
Ralph Orlowski | Reuters
The European Central Bank (ECB) headquarters is pictured in Frankfurt, Germany, September 3, 2015.

Negative interest rates are not the European Central Bank's main instrument and it still has a wide range of policy tools, despite suggestions it is running out of options, Executive Board Member Benoit Coeure told Politico in an interview.

However, the bank is not contemplating "helicopter money", or directly providing cash to consumers to boost consumption as such a scheme risked crossing the line between monetary and fiscal policies, Coeure was quoted as saying on Wednesday.

"Negative interest rates are not our main instrument, they just support our overall policy," he said.

"And looking ahead, we're not short of instruments - our choice is quite large. We will be able to deal with adverse situations if necessary."

For a full text of the interview, click on: https://www.ecb.europa.eu/press/inter/date/2016/html/sp160330.en.html