Dijsselbloem in deflation warning
Read MoreSterling faces pressure as Bank of England meets
Turning to a potential $10 billion-plus fine the U.S. may impose on French bank BNP Paribas, following a criminal probe on whether the lender broke U.S. sanctions on Iran, Sudan and Cuba, Dijsselbloem said it was "over excessive".
"I do think we have to... find grounds for international harmonization on the level of the fines. If a bank has messed up they should be fined, don't get me wrong. But the height of the fine seems to be over excessive and it's not helping the recovery of the banks," he said.
President of the Eurogroup, Jeroen Dijsselbloem, warned on
Thursday that deflation fears plaguing the euro zone could become a
"self fulfilling prophecy" as investors grow increasingly wary.
Dijsselbloem, the head of the group euro zone finance ministers and Dutch finance minister, said the European Central Bank had "grounds to act" at an interest rate decision meeting on Thursday as inflation is off moving in the wrong direction.
Read MoreWall Street anticipates action from ECB
Euro zone inflation fell unexpectedly to 0.5 percent last month, intensifying pressure on Mario Draghi, President of the European Central Bank, to act against the rising threat of deflation.
"The ECB have a mandate, they have to make sure that in the mid-term the inflation stays close to the two percent target -- it is not going in that direction, so there seems to be grounds to act. We will wait for today and see what they do within their mandate," the Eurogroup chief told CNBC.
Read MoreLive blog: ECB's Draghi poised to unveil stimulus
Dijsselbloem, the head of the group euro zone finance ministers and Dutch finance minister, said the European Central Bank had "grounds to act" at an interest rate decision meeting on Thursday as inflation is off moving in the wrong direction.
Read MoreWall Street anticipates action from ECB
Euro zone inflation fell unexpectedly to 0.5 percent last month, intensifying pressure on Mario Draghi, President of the European Central Bank, to act against the rising threat of deflation.
"The ECB have a mandate, they have to make sure that in the mid-term the inflation stays close to the two percent target -- it is not going in that direction, so there seems to be grounds to act. We will wait for today and see what they do within their mandate," the Eurogroup chief told CNBC.
Read MoreLive blog: ECB's Draghi poised to unveil stimulus
PETRAS MALUKAS | AFP | Getty Images
Jeroen Dijsselbloem
The euro zone's inflation reading is well below the ECB's
target of just under 2 per cent and on a par with March, when it hit its
lowest level since autumn 2009.
He warned that the market is expecting too much from just one meeting and the euro zone deflation issue cannot be tackled by ECB intervention alone.
"If you listen to some of the expectations that some of the commentators have shown in the last couple of days, they will probably be disappointed anyway because no way can you deliver such big results in such short time," he said.
"What the ECB can do will help I am sure, but it cannot just come from the ECB. National government and joint co-operation in the Eurogroup has to stay strong," he added.
He warned that the market is expecting too much from just one meeting and the euro zone deflation issue cannot be tackled by ECB intervention alone.
"If you listen to some of the expectations that some of the commentators have shown in the last couple of days, they will probably be disappointed anyway because no way can you deliver such big results in such short time," he said.
"What the ECB can do will help I am sure, but it cannot just come from the ECB. National government and joint co-operation in the Eurogroup has to stay strong," he added.
Craig Moseley | CNBC
Turning to a potential $10 billion-plus fine the U.S. may impose on French bank BNP Paribas, following a criminal probe on whether the lender broke U.S. sanctions on Iran, Sudan and Cuba, Dijsselbloem said it was "over excessive".
"I do think we have to... find grounds for international harmonization on the level of the fines. If a bank has messed up they should be fined, don't get me wrong. But the height of the fine seems to be over excessive and it's not helping the recovery of the banks," he said.
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