6 November 2001, 10:58 EU's Solbes says lower euro zone inflation leaves ECB room to move on rates
BRUSSELS (AFX) - EU monetary affairs commissioner Pedro Solbes says
falling euro zone inflation leaves the European Central Bank room to
move on interest rates.
Commenting on ECB president Wim Duisenberg's remarks on inflation
and monetary policy last night, he said: "The rate of inflation is
going down and, as we have said many times, this means more margin to
manoeuvre for the Bank."
However, he said the timing of the next rate move is up to the ECB.
Following Duisenberg's comments last night the ECB is widely
expected to cut rates by at least 0.25 basis points at Thursday's
meeting of the governing council.
After the eurogroup meeting last night, Duisenberg said the bank's
"most recent assessment is that inflation is falling to levels well
below the 2 pct limit."
"It will be early next year but then it will be well below and then
it will stay there," he said.
"I am sure the governing council will take all the factors leading
to this phenomenon well into account," he said.
Solbes reiterated the European Commission's forecast of euro zone
GDP growth of around 1.5 pct for 2001 and 2002.
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