Despite reports that Austrian National Bank Governor Ewald Nowotny was one of six European Central Bank (ECB) officials who voted against last week's rate cut, this ECB Governing Council member made a series of dovish comments on Tuesday, leaving the door open to further action from the Eurozone's monetary authority.
Nowotny indicated that while many central banks have reached the lower bound in interest rates, that's not the case of the ECB, according to a report by FXStreet. The ECB member also warned that stagnation and not inflation was the danger for the Eurozone, noting that while deflation is not imminent, it must be on the minds of central bankers.
Nowotny also reportedly downplayed the differences of opinion over the rate cut, saying that it was more of timing than of substance and denying that there was such a thing as a "North-South" division of opinion.
The Bank of Austria Governor said that the ECB cut rates because it has a "very clear mandate for price stability". According to the forex site, he reportedly added that "we have low interest rates because we have low inflation rates" and repeated that interest rates are expected to stay as is or lower for an extended period.
Source: LiveCharts
Nowotny indicated that while many central banks have reached the lower bound in interest rates, that's not the case of the ECB, according to a report by FXStreet. The ECB member also warned that stagnation and not inflation was the danger for the Eurozone, noting that while deflation is not imminent, it must be on the minds of central bankers.
Nowotny also reportedly downplayed the differences of opinion over the rate cut, saying that it was more of timing than of substance and denying that there was such a thing as a "North-South" division of opinion.
The Bank of Austria Governor said that the ECB cut rates because it has a "very clear mandate for price stability". According to the forex site, he reportedly added that "we have low interest rates because we have low inflation rates" and repeated that interest rates are expected to stay as is or lower for an extended period.
Source: LiveCharts
