8 August 2001, 13:05 Issing says ECB rates appropriate, and not only for the moment
FRANKFURT (AFX) - Euro-zone interest rates are appropriate and not
merely for the time being, European Central Bank chief economist Otmar
Issing said.
In an interview with Boersen-Zeitung, Issing said the ECB's view in
recent weeks that the interest rate level is appropriate "is not valid
only for that moment".
"It's because the conditions in general do not change rapidly in
such a way that at the next moment another monetary policy would then
be appropriate," he added.
Issing said the ECB would act if its analysis shows any changes in
the risks - either upward or downward - for price stability.
The ECB, which is to hold its next meeting on interest rates in the
12-country euro zone on August 30, has held the main refinancing rate
at 4.50 percent since May 10.
Many analysts expect the ECB to reduce the key rate in the autumn
because the euro-zone economy is slowing down.
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