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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)

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