There will be no change in interest rates before next year, the Austrian member of the ECB Governing Council said yesterday. "While there are first signs that the pace of economic weakening is decelerating, we must remain alert. Banks know the ECB is following a policy of the steady hand, so they don't expect rapid changes in the interest rate. And I think banks more or less also share our expectations regarding the economic outlook."The unusually clear statement from Bank of Austria Governor Ewald Nowotny backed up a similar message from ECB President Jean-Claude Trichet in more careful tones, as the ECB official said the bank was likely to keep interest rates steady for at least the rest of the year. "We are in uncharted waters, and there are still risks of a sudden emergence of unexpected financial turbulence," Mr Trichet said at a weekend conference in Madrid.
No comments:
Post a Comment