Recovery is on track in the euro zone and interest rates are appropriate, European Central Bank Governing Council member Vitor Constancio said on Friday. "Monetary policy in Europe is appropriate to the situation," he told reporters adding that interest rates, currently at 2.00 percent, were at low levels in historic terms. "Recovery is still on," he said.
"Indications are sufficient to conclude that the main scenario for recovery .... is still valid," Constancio told reporters after addressing the Brussels Economic Forum. He declined to comment on Germany and Belgium's latest confidence indicators. Asked about the inflation differentials among euro zone states, he said they were not sufficiently large to lead to a situation that might cause problems, noting that they were no greater than those among American states.///