The European Central Bank is ready to act and has the tools it needs to keep inflation on track towards its goal of just under 2 percent, its chief economist said today.

"We are prepared and ready to act if needed to keep inflation on track towards our aim," Philip Lane said in response to questions on Twitter.

"We certainly have the tools and we have a good performance record in responding to various sources of risks," Lane added.

The former Governor of the Central Bank of Ireland also described Christine Lagarde as an excellent choice for the job of ECB President and said he was very much looking forward to working with her.

He also said the ECB does not see a recession, although he added that the prolongation of uncertainties is weighing on its growth outlook.

Professor Lane said the goal of the bank is not to make markets happy but rather to provide favourable financing conditions.

Mr Lane also said the ECB does not see Bitcoin as a currency, but rather it is a volatile asset, and as a result it does not plan to add it to its reserves.