Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

ECB’s Nowotny Says It’s Not the Right Time to Cut Interest Rates

March 14 (Bloomberg) -- European Central Bank Governing Council member Ewald Nowotny said it’s not the right time to reduce borrowing costs.

“It isn’t the appropriate time to take interest-rate action,” Nowotny, who heads Austria’s central bank, said in Vienna today. “We’re working on the assumption that growth signs will improve over the course of the year.”

While officials discussed cutting borrowing costs last week, the “prevailing consensus” was to leave the benchmark rate unchanged at a record low of 0.75 percent, ECB President Mario Draghi said on March 7. He expects the euro-area economy to “gradually recover” later this year.

“We have an unsatisfactory growth in Europe,” Nowotny said today, adding that the Frankfurt-based ECB is “observing the situation.”

The ECB last week cut its growth forecasts and now expects the 17-nation economy to shrink 0.5 percent this year before growing 1 percent in 2014. It sees inflation slowing to 1.3 percent next year, well below its 2 percent limit.

To contact the reporters on this story: Stefan Riecher in Frankfurt at sriecher@bloomberg.net; Jonathan Tirone in Vienna at jtirone@bloomberg.net

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

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.