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(CEP News) - Speaking in interviews with multiple news organizations, newly appointed head of the Austrian Central Bank Ewald Nowotny said he sees no reason for the European Central Bank to raise or lower rates.
"For the time being the general mood, as I see it, is a steady-hand policy, and I personally don't see a need to change interest rates, neither up nor down," he told Bloomberg. Nowotny added that inflation may have peaked in July, and that the central bank generally expects price growth to slow over the coming months, falling to below the 2.0% target by 2010. Nevertheless, inflation remains high, he added, warning that vigilance on price growth is to be maintained. He also said there is no risk of a recession in the euro zone despite staff projections having been downgraded on Thursday. Nowotny succeeded Klaus Liebscher as head of the Austrian Central Bank on September 1. By Erik Kevin Franco,
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, edited by Sarah Sussman,
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