ECB's Praet Says Paris Attacks May Undermine Economic Confidence
- Board member says economic impact would normally be transitory
- Region's fragile recovery leaves it susceptible to shocks
How Will Paris Attacks Impact Economy, Consumers?
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European Central Bank Executive Board member Peter Praet said the Paris terror attacks may pose a risk to the euro area’s sluggish revival and policy makers will need to monitor data on economic confidence closely.
“Usually these sorts of events have a transitory effect on the economy so this is not a priori a reason to change the way we see the evolution of the European economy,” Praet said in an interview with Bloomberg Television on Monday in Frankfurt. “It’s also true on the other hand that we have a fragile cyclical recovery, fragile with downside risk, and it’s clear these sort of events do not help restoring confidence in the recovery, so this is something we will watch.”