FRANKFURT (MNI) – The European Central Bank’s government buy
program has yielded good results, ECB Executive Board member Gertrude
Tumpel-Gugerell said on Friday.
Asked for how long the central bank plans to continue the
purchases, Tumpel-Gugerell said: “The buying program has so far shown
good results and will continued to be evaluated by the Governing
Council.”
“The measures have shown results. They are aimed at supporting the
effectiveness of monetary policy and easing financial market tensions,”
she added.
Tumpel-Gugerell said that current interest rates remain
“appropriate” and she dismissed any speculation over hyperinflation on
the back of loose interest rates and liquidity conditions.
“We only recently published our forecasts for the coming year and
we see price stability as ensured,” she said during on online chat.
“Of course the euro will survive,” Tumpel-Gugerell asserted. Recently
announced austerity measures will further “strengthen confidence” in the
common currency. “We are on a good path,” she added.
She declined to comment on exchange rate movements but did observes
that the Eurozone is benefiting from increased global trade.
Asked whether ongoing Eurozone bank stress tests include a
potential default of Greece or other Eurozone states, Tumpel-Gugerell
said: “Stress-tests are based on various risk scenarios which will be
published along with results.”
[TOPICS: M$$EC$,MT$$$$,M$X$$$,MGX$$$,M$$CR$]
