UPDATE 1-ECB’s Gonzalez-Paramo says no rate pressure yet

(Adds quotes, details)

MADRID, Nov 11 (BestGrowthStock) – The European Central Bank does
not rule out raising interest rates before removing
extraordinary measures for the financial system, executive
board member Jose Manuel Gonzalez-Paramo said in an interview
published on Thursday in Expansion newspaper.

However, he said the ECB does not see pressure on rates at
this time while he acknowledged that polls show that experts
expect rates to rise next year.

“As is well known, we move rates as a function of the
upward risks for price stability and, at this time, we don’t
believe there’s pressure of this type,” he said. “We’ll see
what happens in the coming months or quarters.”

When asked about the U.S. Federal Reserve’s move to buy
back U.S. sovereign debt, he said it was not up to other
central banks to evaluate the Fed’s policies.

Quantitative easing in the United States effectively
weakens the U.S. dollar, benefiting U.S. exports.

European exports depend on a lot more than exchange rates,
Gonzalez-Paramo said.

“We have sufficient proof that in Europe, with a strong
currency, we continue exporting. And, in second place, we
absolutely believe in the declarations by the (U.S.) treasury
secretary that a strong dollar benefits that country’s
economy,” he said.

U.S. Treasury Secretary Timothy Geithner insisted on
Thursday that Washington would never resort to weakening the
dollar to spur growth.

Gonzalez-Paramo referred to the G20 finance ministers’
communique that said exchange rate flexibility is a fundamental
element of the international monetary system.

“It would be very positive if that were applied in those
areas where the exchange rate is not flexible and its movement
is not determined by the market,” he said.

(Reporting by Tracy Rucinski; Editing by Sanjeev Miglani)

UPDATE 1-ECB’s Gonzalez-Paramo says no rate pressure yet