RobertB
September 5th, 2007, 07:21 PM
Sep 5, 11:47 AM EDT
By MATT MOORE
ECB says market volatility grows
FRANKFURT, Germany (AP) -- The European Central Bank said Wednesday that volatility in the money markets has increased and it is prepared to "act accordingly," a sign that it could lower its benchmark interest rate.
The bank did not explain why it issued the statement, a surprise that caught markets off guard on the eve of a meeting at which its top policymakers are expected to review rates.
The ECB, which sets monetary policy for the 13 countries that use the euro, said it may take action at Thursday's meeting of its Governing Council to "contribute to orderly conditions."
"Volatility in the euro money market has increased and the ECB is closely monitoring the situation," the bank said. "Should this persist tomorrow, the ECB stands ready to contribute to orderly conditions in the euro money market."
AP Business Writers Aoife White in Brussels, Belgium, and Jane Wardell in London contributed to this report.
On the Net:
http://www.ecb.int
By MATT MOORE
ECB says market volatility grows
FRANKFURT, Germany (AP) -- The European Central Bank said Wednesday that volatility in the money markets has increased and it is prepared to "act accordingly," a sign that it could lower its benchmark interest rate.
The bank did not explain why it issued the statement, a surprise that caught markets off guard on the eve of a meeting at which its top policymakers are expected to review rates.
The ECB, which sets monetary policy for the 13 countries that use the euro, said it may take action at Thursday's meeting of its Governing Council to "contribute to orderly conditions."
"Volatility in the euro money market has increased and the ECB is closely monitoring the situation," the bank said. "Should this persist tomorrow, the ECB stands ready to contribute to orderly conditions in the euro money market."
AP Business Writers Aoife White in Brussels, Belgium, and Jane Wardell in London contributed to this report.
On the Net:
http://www.ecb.int