ECB's Linde assures central bank will take action if deflation risk increases

FXStreet (Łódź) - ECB Governing Council member Luis Linde said today at an event in Madrid that the central bank was prepared to act should deflation risks mount. He stressed however that for now the risk was rather low.

Linde, who also heads the Bank of Spain, assured that Spain´s economic situation was slowly improving and that the country´s banks would pass the tough tests ahead of them.

He dismissed the 2013 budget deficit slippage as insignificant and added that it was necessary to continue with wage moderation.