UPDATE – ECB’S Paramo says eurozone rates appropriate-paper (at Reuters)

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Published: November 22, 2009Posted in: Finance, International finance, Merger newsTags: , , , , , , ,

(Adds detail, quotes) MADRID, Nov 22 (Reuters) – The European Central Bank believes eurozone interest rates are “now appropriate”, Executive Board member Jose manuel Gonzalez-Paramo said in a press interview published on Sunday. “We believe our rates are now appropriate and the risks to price stability are controlled in good measure,” Gonzalez-Paramo told El Mundo. Gonzalez-Paramo added that the ECB saw no “short-term pressure” in inflation. “The upside and downside risks are balanced,” he said. He also said he did not foresee any joint action by the ECB and the U.S. Federal reserve, because the United States had a slightly different economic cycle and its financial system was in a different situation. “At this time I no not see what would justify unity of message and co-ordinated action,” Gonzalez-Paramo said. Gonzalez-Paramo also said the ECB would be “more explicit” in December about its plans to withdraw stimulus measures in 2010. “The exit must be gradual and at the right time, without a specific date, ” he said. Asked if the ECB’s last long-term financing crisis measure would be made about that, Gonzalez-Paramo said “nothing has been decided.” “But it is also true, as the president (Jean-Claude Trichet) said that we have no intention of saying anything that may upset market expectations.” (Reporting by Martin Roberts ; Editing by Jon Loades-Carter) ((martin.roberts@thomsonreuters.com; +34 91 585 2130; Reuters Messaging: martin.roberts1.reuters.com@reuters.net)) © Thomson Reuters 2009 All rights reserved See the rest here: UPDATE – ECB’S Paramo says eurozone rates appropriate-paper (at Reuters)

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UPDATE – ECB’S Paramo says eurozone rates appropriate-paper (at Reuters)

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