Bloomberg reports that ECB Governing Council member Olli Rehn said that the ECB is ready to use all the tools necessary to stimulate inflation, and is keeping a close eye on the euro’s appreciation.

“We are certainly ready to use and adjust all our instruments as appropriate. We are closely monitoring developments in the exchange rate, especially regarding the inflation outlook.” - Rehn said.

Rehn noted that several of his Governing Council colleagues, including Dutch governor Klaas Knot, have recently raised the possibility of cutting interest rates.

Rehn described the region’s inflation outlook as “too low for my taste, and more importantly, too low for our aim.”

Euro-area inflation is currently -0.3%, compared with a medium-term goal of just-under 2%. The jump in the exchange rate over the past year is one factor pushing down on prices, in part by depressing import costs.

“I would not enter into a speculation on one or another instrument in our monetary toolbox,” Rehn said. “I would just say we are indeed ready to use and adjust all our instruments as appropriate.”