ECB Holds Hawkish Tone Despite Financial Turmoil

Published September 16th, 2008 - 09:29 GMT
Al Bawaba
Al Bawaba

ECB's Nowotny has added to official responses to the "Wall St Crisis" stating on Austrian radio, and reported by Reuters, that the ECB has special mandate to ensure price stability, and that the continental European financial system is different to the U.S. financial system. He also adds that the ECB has reacted well in response to recent developments. The summation of his comments indicates that European officials remain disinclined to cut rates in response to the current liquidity crisis.