European Central Bank President Mr Wim Duisenberg said today the bank was ready to support the normal functioning of financial markets, which have been thrown into turmoil by terror attacks on the United States.
He said in a testimony before a European Parliament committee that the ECB had been in contact with other central banks in the wake of the attacks, which sent the US dollar spiralling lower against the yen and euro, and boosted oil and gold prices.
"I should like to emphasise that the European Central Bank and the national central banks are standing ready to support the normal functioning of markets and relevant operational systems if the need arises," he said.
The ECB chief said he did not want to speculate on the consequences of the US attacks on the economy. He went on to add that euro area growth was likely to be lower than had been expected a few months ago.
Mr Duisenberg's comments came after German Finance Minister Mr Hans Eichel said talk of a global recession following the attacks on the United States was nonsense and that the biggest danger was posed by those who were predicting economic gloom.
Mr Eichel said he had been in contact with his European Union counterparts and later added that EU partners in cooperation with the US government, and the ECB would ensure that financial markets worked properly.