31 October 2001, 12:55  ECB'S DOMINGO SOLANS SAYS ECB POLICY NOT HURTING ECONOMIC

MADRID, Oct 31 - European Central Bank board member Eugenio Domingo Solans said on Wednesday that the ECB's stance on interest rates was not hurting growth in the euro zone. "The ECB does its duty...which is aimed at maintaining price stability. (That) is not hurting economic growth," he told reporters in Madrid. The ECB left interest rates unchanged at last week's meeting despite widespread expectations it would cut rates to help protect the eurozone economy from the global slowdown in demand following the September 11 attacks on the U.S. and military retaliation by U.S. led forces on Afghanistan. Domingo Solans also said falling inflation and moves to balance public sector budgets in the area meant the euro zone was well placed to withstand a slowing world economy. "We are in a good economic situation to face up to the situation," he said.

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