ECB board nominee says euro value must be watched for inflation impact UPDATE
Tuesday, April 6, 2004 11:52:30 AM
(Updates with further comments on euro, rates) BRUSSELS (AFX) - Jose Manuel Gonzalez-Paramo, nominee to the European Central Bank's executive board, said the level of the euro must be watched for its possible impact on medium-term inflation
Questioned by the European parliament's economic and monetary affairs committee, Gonzalez-Paramo said the ECB "as a watchdog has to be vigilant and survey exchange rates and assess any possible impact" on price stability in the medium-term
He continued: "We have to keep the currency value and, via that, contribute to growth and jobs." Gonzalez-Paramo, who is a Spanish academic, said that currency "volatility is not desirable", but "we can accustom ourselves perhaps to living with it"
He said he is happy with the ECB's monetary policy and its current level of transparency
On rates, he said they are at historic lows, adding that their current level is no obstacle to economic reform
Asked about ECB president Jean-Claude Trichet's comments on rates last Thursday, he said markets should not focus too much on "semantics"
At his press conference, Trichet dropped his description of rates as "appropriate" from his introductory statement
Gonzalez-Paramo said euro zone growth is "still respectable", and that consumption and confidence are picking up
He stressed the importance of EU member states' adherence to the stability and growth pact
"I don't think it would be wise to change the rules of the pact," he said
He suggested however that the pact should be applied more flexibly to countries with low debt
The committee will vote later this morning on his appointment, proposed by EU finance ministers last month
fxstreet.com
===========================================================
Well it appears as if this guy is a hawk.
That will make it harder for Europe to cut.
M |
