ECB Nowotny: At The Beginning Of the End Of Economic Crisis

FRANKFURT (MNI) – The present time marks the beginning of the end
of the economic crisis, European Central Bank Governing Council Member
Ewald Nowotny said Tuesday.

Current data also show an economic recovery worldwide, yet one that
moves at varying speeds, with the US and Asia returning more rapidly
to growth than Europe, Nowotny observed. Still, he cautioned
that growth is not yet sufficient to induce a recovery on the labor
market, according to a summary of remarks to be given today at Princeton
University, provided by the Austrian National Bank, which he leads.

Nowotny also observed that the ECB has begun its exit strategy, but
that too early a hike in Eurozone interest rates would stall recovery.
He said that there were at present neither risks to inflation nor
deflation, he added.

The crisis is not yet over, but “we find ourselves at the beginning
of the end of the economic crisis,” Nowotny said.

Nowotny praised the quick and coordinated aid to Greece, which will
allow the country to help itself, adding that it showed that economic
policy can combat pressing problems.

–Frankfurt bureau; +49-69-720142; frankfurt@marketnews.com

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