Stim­u­lus and oil re­spon­si­ble for Eu­ro­zone growth: ECB

The Pak Banker - - COMPANIES/BOSS -

The un­cer­tain­ties threat­en­ing the global econ­omy are not com­ing from the eu­ro­zone, where growth is es­sen­tially due to stim­u­lus and cheap oil, a Euro­pean Cen­tral Bank of­fi­cial said to­day.

"The eu­ro­zone is not part of the prob­lem," ECB ex­ec­u­tive board mem­ber Benoit Coeure told French broad­caster BFM. "The prob­lem are the ques­tions, the anx­i­eties, and those about the big emerg­ing coun­tries, about China and the United States," he said af­ter an­other day of sharp losses on Euro­pean and US eq­ui­ties mar­kets.

"Our di­ag­no­sis to­day is that there are no bub­bles in the eu­ro­zone," Coeure said when ques­tioned about the ECB's ul­tra-low in­ter­est rate pol­icy. In­stead, he in­sisted the ECB's stim­u­lus pol­icy, which is in­ject­ing 60 bil­lion euros per month into the mar­kets, has been key in prop­ping up growth.

"Growth, the re­cov­ery in the eu­ro­zone, it is es­sen­tially mon­e­tary pol­icy and the oil price," said Coeure. Ex­pan­sion of the eu­ro­zone econ­omy slowed to 0.3 per­cent in the third quar­ter of last year.

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