MNI BRIEF: ECB Not Near To An Insurance Cut -BOS's Escriva

The European Central Bank is not at the stage of debating whether it needs an interest rate “insurance cut,” Bank of Spain Governor Jose Luis Escriva said on Wednesday.

Monetary policy lags still provide supportive factors for the eurozone economy, as past easing is still improving financial conditions, Escriva said at an event organised by Bloomberg.

Referring to upside and downside risks to the inflation outlook, Escriva said he saw little chance of an overheated economy but that the biggest upside risk was a potential medium-term loss of global economic efficiency from trade distortions. (See MNI SOURCES: Doubts Over EU Carbon Pricing Key For ECB Rates)