FRANKFURT (MNI) – The European Central Bank has no immediate plans
for further interest rate cuts, ECB Governing Council member Ewald
Nowotny said in an interview with the Wall Street Journal Deutschland on
Tuesday.
The ECB has taken “significant steps” both as regards liquidity
provision and lowering borrowing costs, Nowotny said. “We now have a
consensus that we should…let these measure take full effect. Only
after that will we take additional decisions,” Nowotny said.
The head of the Austrian central bank reminded that the ECB never
precommits, but “currently there are no specific plans,” he said.
Nowotny said that the ECB stands ready to take additional
unconventional measures should deflationary risks emerge and would not
exclude the possibility of quantitative easing.
“It is our job to prevent a deviation from price stability both to
the upside and to the downside and to use the appropriate instruments
[to achieve this]. Which specific ones those may be, depends from case
to case,” he said.
–Frankfurt newsroom +49 69 72 01 42; e-mail: jtreeck@marketnews.com
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