European Central Bank Governing Council member Mr Ernst Welteke today welcomed the rising value of the euro, saying it would help tame price pressures.
"Achieving our price perspective will be made easier," Mr Welteke, who also is the Bundesbank president, said at a press conference.
Europe's single currency has risen by 15 per cent against the dollar this year, and the past few days has seen it vault above the $1.02 level. A strong currency makes it cheaper to import goods, helping tame inflation which the ECB is trying to get below its 2 per cent target.
Some analysts have suggested loosening the ECB's 2 per cent inflation ceiling, especially when it is considering admitting new members. Although the central bank is reviewing its inflation policies, Mr Welteke said he was not convinced ECB monetary strategy needed change.As for the timetable to admit 10 new countries, mostly from Eastern Europe, into the euro zone, Mr Welteke said some may be ready by 2007 but they should not rush.
AFP