VIENNA (MNI) – The deceleration of the economic expansion warrants
concern, European Central Bank Governing Council member Ewald Nowotny
said Monday.
Speaking at a panel discussion, the head of the Austrian National
Bank called the slowing of growth an “alarming development” that people
should worry about.
What people “need not worry about,” he said, is inflation, since
“all economic forecasts agree that we will see the peak in inflation
this quarter.”
The rapid growth of credit in Central and Eastern Europe prior to
the crisis was an “inappropriate development” and “it is good that this
is now being reversed,” he asserted.
–Frankfurt bureau tel.: +49-69-720142. Email: frankfurt@marketnews.com
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