By David Barwick
FRANKFURT (MNI) – The European Central Bank will most likely
proceed with its exit strategy unhindered and return next year to
‘normal operations,’ ECB Governing Council member Jozef Makuch told
Market News International on Friday.
Speaking on the margins of the Informal Ecofin winding up here
Friday, Makuch, who heads Slovakia’s central bank, expressed very
cautious optimism in light of uncertain U.S. economic developments.
With regard to withdrawing the ECB’s crisis-driven nonstandard
liquidity measures, “I am optimistic,” he said. “I think we will
continue without any problems with the exit strategy and go to normal
operations in the next year.”
As for the Eurozone’s third-quarter performance, Makuch said, “I
have not too much optimism, but not pessimism. Because we are looking at
the USA’s developments. It should cause some problems; if not, we will
be very happy, very keen on U.S. success.”
Despite his reservations about the U.S., Makuch asserted that he is
“not nervous,” because “that is too strong” a word.
“There is some risk [from the U.S.] — not a big risk, not an
important risk — because there is some decline of GDP,” he said.
In any case, Europe does not have to worry about a double-dip
recession, Makuch asserted.
Asked about his view of the single currency’s present exchange rate
level, in particular in the wake of Japanese forex interventions, Makuch
replied, “I am satisfied with the euro.”
–Frankfurt bureau tel.: +49-69 720142. Email: dbarwick@marketnews.com
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