✂ Fed’s first rate cut since 2020: Use our free Stock Screener to find new opportunities fastExplore for FREE

UPDATE 1-Gonzalez-Paramo says ECB in wait-and-see mode

Published 06/24/2009, 02:13 AM
Updated 06/24/2009, 02:16 AM

* Rates appropriate

* 1 pct not a minimum level for any scenario

* ECB waiting to see impact of latest measures

(adds more quotes)

MADRID, June 24 (Reuters) - The European Central Bank is waiting to see the impact of current monetary policy measures before deciding its next move, Executive Board member Jose Manuel Gonzalez-Paramo said in an interview published on Wednesday

"Let's wait and see how the latest measures work. We did not decide that 1 percent was the lowest (interest rate) level imagineable in any scenario, but we do think it is the appropriate level give the information that we have currently available," he told the newspaper Publico.

Gonzalez-Paramo added there had "undoubtedly" been an inflection point in the rate of economic slowdown, but that the main challenge was to foster a return to confidence.

"We are no longer in free fall, but we are still falling. This is what I understand by green shoots. They are a good sign, they can flower, strengthen and become trees if accompanied by the right policy," he said.

The ECB board member added the Spanish goverment had to think about what measures needed to be implemented once the recovery got fully under way.

* Click on for eurozone economic indicators expected over the next few weeks and Reuters surveys ahead of the data (Reporting by Elisabeth O'Leary; Editing by Kim Coghill)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.