Positive Development In Eurozone Dims Rate Cut Scope, Says ECB's Nowotny
The recent "stream of good news" from Eurozone reduced the need for further interest rate reduction, European Central Bank's Ewald Nowotny said in an interview with the Bloomberg news agency.
"I would not see many arguments now for a rate cut," Nowotny, who heads Austria's central bank said. But the most recent developments will not have any immediate effects on the policy of the ECB.
The main refinancing rate remains at record low 0.50 percent. The interest rate was last reduced by a quarter-basis point in May.
Nowotny said he is "cautiously optimistic" about the economic outlook. The Eurozone recovery is weak, he noted.
The recovery in Germany and France helped the 17-nation euro currency bloc to exit recession in the second quarter. Eurozone GDP grew at a pace of 0.3 percent.
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