Weber, 53, said the ECB is likely to raise its euro-region growth forecasts next month after the German economy, Europeâs largest, expanded in the second quarter at the fastest pace since records for a reunified country began in 1991. The Bundesbank yesterday lifted its German growth prediction for 2010 to 3 percent from 1.9 percent.
âUpward Revisionsâ
âSince the second quarter outpaced our expectations the euro-area projections too are likely to be revised up as a result of the German performance,â Weber said. The euro-region revisions will be âmore modestâ than Germanyâs because of weaker growth in some peripheral countries, he said.
The ECB in June predicted euro-area growth of 1 percent this year and 1.2 percent in 2011. Weber said there are no signs of inflation, and indicated the ECBâs key interest rate is likely to remain at a record low of 1 percent for some time.
âSince inflation risks continue to be low over the policy- relevant medium term, this does not suggest a policy tightening yet,â he said.
http://noir.bloomberg.com/apps/news?pid=20601087&sid=ahZ6z67eIk8k&pos=1
âUpward Revisionsâ
âSince the second quarter outpaced our expectations the euro-area projections too are likely to be revised up as a result of the German performance,â Weber said. The euro-region revisions will be âmore modestâ than Germanyâs because of weaker growth in some peripheral countries, he said.
The ECB in June predicted euro-area growth of 1 percent this year and 1.2 percent in 2011. Weber said there are no signs of inflation, and indicated the ECBâs key interest rate is likely to remain at a record low of 1 percent for some time.
âSince inflation risks continue to be low over the policy- relevant medium term, this does not suggest a policy tightening yet,â he said.
http://noir.bloomberg.com/apps/news?pid=20601087&sid=ahZ6z67eIk8k&pos=1