VIENNA (MNI) – There is no risk to Eurozone price stability on the
horizon, whether from commodities, money supply or the real economy,
European Central Bank Governing Council member Ewald Nowotny said
Thursday.
Nowotny reiterated that there has been no change in the ECB’s “main
goal,” which is price stability.
“I see absolutely no point at which the achievement of this goal is
at risk,” he said in a press conference here. “When one looks at it a
bit in detail, [it's hard to see] where inflationary risks could be.”
One possible inflation pressure cited by some is the large amount
of liquidity in the banking system. However, “I don’t see any risk
here,” Nowotny said.
“The second area where there could be potential [for inflation] is
in terms of the real economy,” he added. However, “we have,
unfortunately, in Europe, as before, a high unemployment rate. We have
unused capacity. I therefore see from the real economy no influence.”
With regard to the possibility of imported inflation from rising
commodity prices, Nowotny acknowledged that “we have some tendencies” in
that direction. “But overall, none to the degree that leads to an
inflation risk.” Taken together, all off those factors mean “I see
absolutely no perspective of a risk of inflation,” he said.
[TOPICS: M$$EC$,M$X$$$,MT$$$$,M$$CR$]
