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)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared
People walk in the Wipro campus in Bangalore June 23, 2009. REUTERS/Punit Paranjpe/Files

Wipro Q4 net profit beats estimates, rises 29 percent

Wipro posted a 29 percent rise in its fourth-quarter net profit, beating expectations, helped by increased IT spending by its customers. For the quarter ended March 31, the company said it earned 22.27 billion rupees compared with 17.29 billion rupees a year earlier.  Full Article | Full Coverage 

REUTERS SHOWCASE

Election 2014

Election 2014

India holds biggest day of voting with BJP gaining strength  Read | Full Coverage 

Market Eye

Market Eye

Sensex jumps 351 points, snaps 3-day losing streak  Full Article 

S&P on India

S&P on India

S&P: India's ratings to depend on next govt econ, fiscal policies.  Full Article 

Ambitious Aim

Ambitious Aim

In green car race, Toyota adds muscle with fuel-cell launch.  Full Article 

Deal Talk

Deal Talk

Piramal to buy 20 percent stake in Shriram Capital for $334 million.  Full Article 

Bond Market

Bond Market

A star abroad, RBI boss riles bond traders at home  Full Article 

Reuters India Mobile

Reuters India Mobile

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