UPDATE: EU's Barroso Sees Right Conditions For ECB Rate Cut
PARIS -(Dow Jones)- The necessary conditions are present for a "very clear" move to cut interest rates by the European Central Bank, Jose Manuel Barroso, president of the European Commission, said Sunday.
"The conditions are there for an interest rate cut," Barroso said on French radio station RTL, noting that inflation was becoming less of a concern than growth.
Barroso said he expected the ECB to make a "very clear" move to cut rates when its governing council meets Thursday. He declined to comment on the exact magnitude of the cut he was expecting out of respect for the ECB's independence.
The current financial and economic crisis has shown the importance of the euro for the protection of euro zone economies, Barroso also said.
Barroso said that as part of coordinated stimulus plans being prepared across the EU, some countries are likely see their budget deficits increase.
The EU's stability and growth pact, which calls for fiscal rigor, remains in effect, he said.
"The pact is in vigor, and we're going to apply it rigorously, but while bearing in mind that we're in exceptional circumstances," Barroso said.
-By Jethro Mullen, Dow Jones Newswires; 33 1 4017 1738; jethro.mullen@dowjones.com
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(END) Dow Jones Newswires
November 30, 2008 14:26 ET (19:26 GMT)
Publié le 30 novembre 2008 Copyright © 2008 Dowjones
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