VIENNA, Oct 5 (Reuters) - The current exchange rate of the euro poses no major threat to the euro zone and merits scrutiny but no immediate action, European Central Bank Governing Council member Ewald Nowotny was quoted as saying on Monday.
Asked by Market News International whether he agreed with
Eurogroup Chairman Jean-Claude Juncker that the level of the
euro
Nowotny said that he expected economic growth in the third and fourth quarter of this year and in 2010, but that this growth would remain weak.
"The prospects for global growth have clearly improved, but still it will be positive growth but weak," Nowotny told MNSI.
He said that inflation expectations were currently stable and risks for the outlook were "quite balanced".
"Inflation expectations as I see them now are stable," he said. "The ECB has a policy of a steady hand and I think this policy of a steady hand has proved to be the right strategy, but one has to watch developments closely." (Reporting by Boris Groendahl; Editing by Kim Coghill)