ECB’s Nowotny Says Europe Might Beat Expectations

The euro zone might grow stronger this year than so far expected, European Central Bank Governing Council member Ewald Nowotny said on Tuesday.

The ECB raised its growth forecast for this year slightly in December and expects the euro zone’s gross domestic product (GDP) to grow 1.1 percent.

“Maybe there is even potential on the upside (to our forecasts),” said Nowotny, who is also the head of Austria’s central bank, adding that the outlook for Europe as a whole was now much better than it was a year ago.

“Maybe some countries like Germany, like Austria, might reach the 2 percent growth. We are still cautious in that our prediction is a bit lower but that might be something to be expected,” Nowotny said.

The euro rose to $1.3695 after Nowotny comments from 1.3666 before.

He also stressed that the ECB saw no risk of deflation or inflation in the euro zone, “not in short run and also not in medium run”.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza