MNI BRIEF: ECB Rates Do Not Need to Fall Further- Ex-Official
MNI (LONDON) - ECB interest rates do not need to fall further, former senior ECB official Ignazio Angeloni told the ECON Committee of the European Parliament this afternoon.
"With a policy rate of 3.25% and inflation at 2% and core at 2.7, monetary policy appears to me to be close to balance" and currently appropriate, Angeloni said. (see MNI SOURCES: ECB Heads For 25BP Cut; Risks From Trump, Germany )
"Interest rates should not decrease further. They have already gone down and we have seen that they are close to balance. Lately the exchange rate of the euro has depreciated further and that has added to the expansionary stance so my judgement would be at this particular moment that no further reduction of interest rates are needed for the ECB." But he said that energy would need to stay at their current levels for this view to continue to be correct.."
Angeloni was formerly director general for financial stability at the ECB and deputy director general of research. He made the comments to the ECON Committee as its members prepare to meet ECB President Christine Lagarde for their regular dialogue on monetary policy in December.