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ECB is ready to step in again if needed, Kazimir says

BY Reuters | ECONOMIC | 05:00 AM EST

FRANKFURT, Dec 22 (Reuters) - The European Central Bank is happy with the outlook for inflation in the euro zone but ?it is ready to step in again if ?needed, ECB policymaker Peter Kazimir said on ?Monday.

He was joining a ?chorus ?of central bank governors from all corners of ?the 20-country-bloc in ?warning about risks to the benign projections that the ECB unveiled ?on Thursday ?as ?it kept rates interest rates steady for a fourth straight meeting.

"The coming ?year is likely to bring new challenges that households, firms and indeed our policy may have to respond to," Kazimir, the Slovak ?central ?bank governor, said in an opinion piece.

"We remain flexible and ready ?to step in should future developments warrant fresh action," he added.

Kazimir said the euro zone's economic foundations were "showing cracks" that other policymakers should fix with structural ?reforms that integrate European capital markets and "reduce the bureaucratic weight" on businesses. (Reporting by ?Francesco Canepa; Editing by Toby Chopra)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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