BERLIN (MNI) – The current euro-dollar level is no cause for great
concern, European Central Bank Governing Council member Ewald Nowotny
said Monday, reminding that ECB aims for price stability, not a
particular exchange rate.
“There is no major concern,” the Austrian central bank governor
told journalists here when asked about the euro’s slide to four-year
lows.
“In the last years since the existence of the euro we had a variety
in notations, so the actual rates we see now are of no specific
concerns,” he explained. “The ECB has always said that we have a goal
regarding price stability, which means there is no explicit goal”
regarding foreign exchange rates.
Asked whether the ECB’s decision to buy government bonds
compromised its independence, Nowotny replied:
“Not at all. The ECB ist the most independent central bank of the
world because its independence is enshrined in the European treaties.
The monetary policy decision we took [on buying bonds] doesnt change
this at all.”
“The ECB clearly expressed in its original decision that in
parallel on buying on the secondary market it will do sterilizing
actions,” he reminded. “There will be no net monetary effect.”
“There are a number of instruments” the ECB could use to sterilize
the bond purchases, “starting with the deposit facility,” he said.
“Other instruments may come.”
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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