KUALA LUMPUR, May 6 (Reuters) - It is too early to say that the end is in sight for the global financial crisis and its impact on the world economy, Dutch central bank governor Nout Wellink said on Wednesday.
"It is clear that before our economies can come back on track, the situation in the financial sector should have been stabilised and that is not the case yet," Wellink, who is also European Central Bank council member, told a news conference in the Malaysian capital.
The European Commission forecast on Tuesday that the euro zone economy would shrink 4 percent this year.
"From now on we will see the interaction between deteriorating economic and the financial sector," Wellink said.
"We have seen the consequences of what happened in the financial sector, what we are seeing now is the impact of developments in the financial sector on the real economy and the feedback to the financial sector," he said.
In the United States, there were signs of a bottoming or at least a slowing in the pace of house price falls, Wellink said, as well as a pickup in some confidence indicators.
When asked about European Central Bank policy ahead of this week's rate meeting, Wellink declined to comment.
(Reporting by David Chance, Editing by Tomasz Janowski)