Mubasher: The European Central Bank (ECB) could be facing a decision to act for supporting the economy within months, according to executive board member Benoit Coeure.

While most of the worries over the economy are temporary and related to the manufacturing activity, financial markets conveyed “quite alarming” signals, Coeure told the Financial Times (FT) in an interview.

“The constellation of prices in the bond market paints a picture of the global economy which is very bleak,” Coeure told the FT, asserting the necessity of paying some attention to market signals.

This was the latest dovish tone struck by ECB officials, after President Mario Draghi said that policymakers are ready to act, while even raising the likelihood of interest rate cuts or extending quantitative easing (QE) programme.

“So far we’re talking about contingency planning, [but] at some point during our next few meetings, we might very well be facing a situation where risks have materialised,” Coeure was quoted by the newspaper.

German 10-year bond yields dropped below zero in early May and are currently at -0.254%, while a markets gauge of Eurozone inflation projections also dipped.

All of the ECB approaches to monetary loosening “come with costs and benefits, [yet] none of this would deter us from acting,” Coeure said.