Praet sees no reason to change ECB policy -MNI

FRANKFURT Mon Jan 14, 2013 3:06pm IST

FRANKFURT (Reuters) - European Central Bank Executive Board member Peter Praet sees no reason to change the ECB's monetary policy at the moment and urged governments to stick to their agreed reform path.

The ECB Governing Council decided unanimously last week to leave the euro zone interest rates unchanged at 0.75 percent, pointing to signs of stabilization in financial markets, yet still a weak economic recovery.

"The monetary policy stance is appropriate," Praet told MNI in an interview published on Monday.

"We have to wait and see what happens while always looking at our main objective and recognizing that the context remains fragile and that downside risks to growth still prevail."

Praet said that euro zone member states had the main role in getting confidence to return by sticking to their promises of cutting down budget deficits.

"Countries may be subject to reversals because of political reasons and all that; there may be external factors with negative contagion," he said. "So it is important that countries underpin currently renewed confidence with effective action."

(Reporting By Eva Kuehnen and Sakari Suoninen)

Economic Pulse

Reuters Showcase

Reaction to Budget

Reaction to Budget

India budget unlikely to impact credit rating - agencies  Full Article 

PMI Data

PMI Data

Factory activity growth slows to five-month low in Feb  Full Article 

Ola Buys Rival

Ola Buys Rival

Ola buys rival TaxiForSure for $200 million  Full Article 

Coal Auction

Coal Auction

India examines coal mine bids amid reports of discrepancies  Full Article 

Battling Apple

Battling Apple

Samsung unveils sleek new Galaxy phones  Full Article 

China Economy

China Economy

China Feb HSBC PMI at seven-month high but more rate cuts seen on the cards  Full Article 

Global Economy

Global Economy

Stimulus swells as China eases, India spends   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage