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17 Feb 2014
ECB's Nowotny optimistic about EU recovery
FXStreet (Łódź) - ECB Governing Council member Ewald Nowotny said today at an event in London that the considerable improvement in the Eurozone economy was making the central bank's bond purchase program less relevant.
“There are no expectations in the market of a break-up in the euro zone,” he pointed out and expressed satisfaction with the recent Eurozone GDP data.
The ECB policymaker stressed however that downside risks remained, including volatility in financial markets, disinflation or the failure of EU national governments to implement structural reforms on time. He stated that maintaining price stability was the central bank's main aim and suggested that Eurozone inflation could still be below 2% in 2016.
Nowotny signalized that the ECB Governing Council discussed introducing a negative deposit rate, but that no decision had been made yet. He also said that a deposit rate cut would only take place in the context of a reduction in the benchmark rate.
“There are no expectations in the market of a break-up in the euro zone,” he pointed out and expressed satisfaction with the recent Eurozone GDP data.
The ECB policymaker stressed however that downside risks remained, including volatility in financial markets, disinflation or the failure of EU national governments to implement structural reforms on time. He stated that maintaining price stability was the central bank's main aim and suggested that Eurozone inflation could still be below 2% in 2016.
Nowotny signalized that the ECB Governing Council discussed introducing a negative deposit rate, but that no decision had been made yet. He also said that a deposit rate cut would only take place in the context of a reduction in the benchmark rate.