VIENNA (Reuters) - European Central Bank Governing Council member Ewald Nowotny said on Tuesday the danger of deflation in Europe had receded.
“I am of the opinion that the policy of having such low interest rates is certainly not a lasting state of affairs,” he told a panel discussion on Tuesday. “This is a special situation that can be explained from a special circumstances — the danger of slipping into deflation — and this danger is now gone.”
He made clear, however, that interest rates in the euro zone were set to stay low for some time, noting conditions were not ripe for a change in monetary policy.
Reporting by Michael Shields; Editing by Robin Pomeroy