Constancio Sees No Need for ECB Rate Reduction Now, MNI Reports

European Central Bank Vice President Vitor Constancio said the key interest rate is appropriate for now, Market News International reported, citing an interview.

“If of course the economic data change, if the economy would weaken and inflation would then abate as a consequence, then things can change,” he said, according to MNI.

A rate cut would contribute “not much” for now and “rates are already quite accommodative, quite low,” MNI cited Constancio as saying. Talk of a negative deposit rate is mainly an intellectual exercise “right now,” he said.

Constancio said the inflation rate has seen a “very slight increase, but with no real meaning,” and repeated that the ECB sees inflation slowing below 2 percent in 2013, MNI reported. The ECB is “waiting for countries to move” after it unveiled a bond-purchase program to fight the debt crisis, and “right now we cannot do anything else,” MNI cited him as saying.

To contact the reporter on this story: Craig Stirling in London at cstirling1@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net

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