JAPAN: European Central Bank policy maker Christian Noyer says fixing the euro zone banking system is crucial to the region's recovery
Record ID:
466660
JAPAN: European Central Bank policy maker Christian Noyer says fixing the euro zone banking system is crucial to the region's recovery
- Title: JAPAN: European Central Bank policy maker Christian Noyer says fixing the euro zone banking system is crucial to the region's recovery
- Date: 11th October 2012
- Summary: TOKYO, JAPAN (OCTOBER 10, 2012) (REUTERS) EUROPEAN CENTRAL BANK POLICY MAKER CHRISTIAN NOYER SEATED ON STAGE NEWS CONFERENCE IN PROGRESS (SOUNDBITE) (English) EUROPEAN CENTRAL BANK POLICY MAKER AND BANK OF FRANCE GOVERNOR CHRISTIAN NOYER SAYING: "We stand ready to intervene and believe us, if we do it, we will be successful. We'll do whatever it takes to force the market move ahead." NOYER SEATED ON STAGE JOURNALIST TAKING NOTES (SOUNDBITE) (English) EUROPEAN CENTRAL BANK POLICY MAKER AND BANK OF FRANCE GOVERNOR CHRISTIAN NOYER SAYING: "Basically, our analysis, and my analysis, is that the importance of the precise point of the policy rate at the moment is less important than the transmission of our policies." JOURNALIST ASKING QUESTION TO NOYER JAPAN FOREIGN PRESS CLUB OFFICIAL ASKING QUESTION TO NOYER (SOUNDBITE) (English) EUROPEAN CENTRAL BANK POLICY MAKER AND BANK OF FRANCE GOVERNOR CHRISTIAN NOYER SAYING: "In view of all these problems and answers, what have ECB and the euro system done in the meantime? We have been providing, I believe, a really valuable support in this period of necessary reforms." NEWS CONFERENCE IN PROGRESS (SOUNDBITE) (English) EUROPEAN CENTRAL BANK POLICY MAKER AND BANK OF FRANCE GOVERNOR CHRISTIAN NOYER SAYING: "Most of the problems that existed have been addressed already or are being addressed." NOYER SHAKING HANDS WITH PRESS CLUB OFFICIALS
- Embargoed: 26th October 2012 13:00
- Keywords:
- Location: Japan
- Country: Japan
- Topics: International Relations,Economy,Politics
- Reuters ID: LVATCHUQUBQ7UOYBQUEF3SN7NGP
- Story Text: European Central Bank (ECB) policy maker Christian Noyer said on Wednesday (October 10) fixing the euro zone banking system transmission mechanism takes precedence over lowering interest rates now.
Noyer's comment, made on the sidelines of the annual International Monetary Fund (IMF) meeting in Tokyo, countered calls for immediate monetary expansion to support the region's ailing economy.
Noyer also stressed the ECB's resolve to act forcefully when needed under its bond-buying programme to keep bond yields of peripheral euro-zone economies from spiking.
"We stand ready to intervene and believe us, if we do it, we will be successful. We'll do whatever it takes to force the market to move ahead," said Noyer, the French Finance Minister, in a news conference at the Foreign Correspondent's Club of Japan.
Noyer defended the ECB's decision to keep interest rates on hold, saying that the priority now was on fixing the region's banking system so that the funds injected by the central bank funnel broadly and equally through its economies.
"Basically, our analysis, and my analysis, is that the importance of the precise point of the policy rate at the moment is less important than the transmission of our policies," he said.
The ECB's main refinancing rate is now at a historic low of 0.75 percent and economists expect another rate cut this year.
In its most recent forecasts for the European economy on Tuesday (October 9), the IMF said there was room for lower ECB rates to boost growth, as core inflation in the 17 countries sharing the euro currency was under control.
Noyer said the bond-buying program, as well as progress towards a European banking union, should help allay fears about a break-up of the euro zone.
His comments echoed those of ECB Vice-President Vitor Constancio, who said Europe's progress in dealing with its sovereign debt crisis should encourage countries world-wide that had been worried about spillover effects.
"In view of all these problems and answers, what have ECB and the euro system done in the meantime? We have been providing, I believe, a really valuable support in this period of necessary reforms," Noyer said.
"Most of the problems that existed have been addressed already or are being addressed," he added.
European policy makers proposed earlier this month that the ECB take charge of supervising all banks in the euro currency zone from January, as a first step toward a banking union where euro zone countries would jointly back their lenders. - Copyright Holder: REUTERS
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