© Reuters. FILE PHOTO: Austria’s National Bank, OeNB, Governor Ewald Nowotny speaks during an economics conference in Linz

BRATISLAVA (Reuters) – Euro zone growth is weaker than previously thought but the growth scenario outlined by the European Central Bank in December remains valid and a rate hike this year is still possible, Austrian policymaker Ewald Nowotny said on Friday.

Nowotny, known as a hawk on the ECB’s 25-member Governing Council, said that no big moves are likely at the January 24 policy meeting and even a decision on a new long-term funding facility for banks is not urgent.

“We were aware that there were risks but the basic story (outlined in December) still holds,” Nowotny told reporters. “At the January meeting we will not have a lot of new data. As we are data-based, I do not see that at the January meeting there will be major changes.”

When asked if he could still see an interest rate hike this year even though market expectations for a move have been pushed back into 2020, Nowotny said: “I can image it.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

READ  Rising U.S. bond yields bring back Wall Street's sinking feeling

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

WHAT YOUR THOUGHTS

Please enter your comment!
Please enter your name here