LONDON (AFX) - Bundesbank president Ernst Welteke said it is not yet time for the European Central Bank to cut interest rates.
In an interview with CNN International, Welteke, who sits on the ECB's governing council, said signs of a U.S. slowdown have caused the ECB to watch economic conditions closely, but no rate cut is likely for now.
"We still feel it is not yet the time to reduce interest rates. Of course we will watch closely what goes on in the United States ... [But] we are optimistic there will be strong growth in the euro zone this year."
"The risks of inflation are coming down, but we have to look at the new (economic) information since the beginning of the year," added Welteke, according to an extract of the interview on CNN's website.