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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (17866)	12/7/2004 10:12:33 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

Weber says euro rise unwelcome, intervention available to central banks UPDATE [Mish challenge - quit bitching and do it] Tuesday, December 7, 2004 2:38:22 PM afxpress.com (Updating with Weber comments that strong euro poses risks for euro zone growth) FRANKFURT (AFX) - Bundesbank president Axel Weber said the recent appreciation of the euro to new all-time highs against the US dollar is "unwelcome" He also said the strong euro "poses certain risks" for euro zone growth Foreign exchange intervention is an instrument that is available to central banks at any time, Weber also told reporters at the Bundesbank annual press conference But he said the European Central Bank takes exchange rate developments into account when it makes its monetary policy decisions. The ECB's current monetary policy setting, with its key rate at 2.0 pct, is "strongly expansive", Weber said [If it is so friging expansive then tell me why Europe is not expanding - mish] In response to a question about inflation risks pertaining to excess liquidity, Weber also said though an inflation risks exists, he sees no reason for the ECB to change its monetary policy at present Vigilance is important, but there is "no need for action", he said [It seems this is exactly the sentiment expressed here in the US too - everyone likes to "watch" - mish] Earlier, Weber said the Bundesbank expects German economic growth to slow to 1.0-1.5 pct next year from 1.7 pct this year, before adjustment for calendar effects Weber also reiterated that Germany could find it difficult to reduce its public deficit to 3.0 pct of GDP in 2005, as required under the EU stability and growth pact, although he did not rule it out