There is no need to change the level of euro-zone interest rates, head of the European Central Bank Mr Wim Duisenberg has said. In an interview to appear today, Mr Duisenberg also told the French financial daily La Tribune that growth in the 12-nation zone should begin to pick up in the second half of the year and acknowledged that the scope of Germany's public deficit was a cause for concern.
"Based on information now at our disposal and in looking ahead to the next two years, the current monetary level is appropriate," he said.
"I repeat, on the basis of available information, there is no need to change it. If the information changes, we will consider it." Noting that short- and long-term interest rates are now at their lowest levels in 30 years, he said they "in no way amount to an obstacle to a recovery of growth".The bank last lowered its benchmark rate on November 8th and most analysts have concluded that the ECB has reached the end of its easing cycle, which saw cuts totalling 1.5 percentage points last year.
Mr Duisenberg also predicted the euro zone would enjoy a pick-up in economic momentum this year.
Meanwhile, industrial output in the euro zone declined 0.8 per cent in November compared with the figure for October, and 4.3 per cent over the previous 12 months, acording to the European statistics office Eurostat.
