31 October 2001, 12:02  ECB wants to be certain rate cuts will not jeopardize price stability - Noyer

MILAN (AFX) - European Central Bank deputy president Christian Noyer said the bank wants to be certain that price stability will not be jeopardised by a "hasty" cut in interest rates which would damage the bank's credibility. In an interview with the daily Il Sole 24 Ore, Noyer said economic fundamentals are "good" in the eurozone and there is no overcapacity in the manufacturing industry which requires a long readjustment process. He added that the risk of a global economic recession is limited. Noyer said that no EU finance minister has ever "seriously" put into question the EMU stability pact in talks with the central bank. He added that the central bank's independence and judgement has always been respected in talks with governments. The central bank believes it would be "dangerous" for EU member states if the process of rebalancing public accounts in the medium-term was put into question.

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