ATHENS, Nov 2 (Reuters) - The European Central Bank will use its entire policy arsenal if and when it is needed, Finnish central bank chief Olli Rehn said on Friday, when asked if the central bank could extend a fresh set of long-term loans to the bank sector.
“If needed, we will then consider the whole toolbox that we have at our disposal,” Rehn said in Athens, when asked about the possibility of new targeted longer-term refinancing operations or TLRTOs.
ECB President Mario Draghi and French central bank chief Francois Villeroy de Galhau both said last week that fresh TLTROs are an option that may be considered in due time.
The previous four-year TLTROs expire in mid-2020 and lenders will need to start deciding about a year before their maturity on how to replace them.
Reporting by Francesco Canepa Writing by Balazs Koranyi