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ECB's Liikanen: worst of crisis may be ahead -paper

Published 02/11/2009, 11:28 PM
Updated 02/11/2009, 11:32 PM

HELSINKI, Feb 12 (Reuters) - The worst of the global financial crisis may be yet to come, European Central Bank (ECB) Governing Council member Erkki Liikanen said in an interview published on Thursday.

"I would not say that the worst is over yet, though in some parts of the financial markets improvement has begun to be seen," Liikanen told Finnish online business newspaper Taloussanomat.

"The economic crisis seems to lasting longer and spreading," said Liikanen, who is also governor of the Bank of Finland. "Economic growth is slowing everywhere, and world trade is contracting."

His remarks came six days after he said the ECB could cut interest rates at its March meeting and the bank's message was that risk was in balance in relation to price stability.

He did not comment directly on ECB rates in the Taloussanomat interview.

The ECB on Feb. 5 kept interest rates steady at 2.0 percent but signalled it would probably cut rates next month. (Reporting by John Acher; Editing by Clarence Fernandez)

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