ECB’s Nowotny Cautions Against New Asset Purchases, Profil Says

(Bloomberg) --

Outgoing European Central Bank Governing Council member Ewald Nowotny argued against resuming asset purchases, saying he doubts more monetary stimulus will be able to deliver a significant boost to the euro-area economy.

“I don’t think there’s any need to restart this program,” Nowotny, who will retire from the Austrian central bank at the end of the month, said in an interview with Profil magazine. “I’m skeptical whether further expansion policy measures will have a real positive economic impact,” he said, adding that “we have to learn how to live with lower growth and inflation rates.”

The pace of economic growth in the region halved in the second quarter as concerns over global trade tensions and political uncertainty sapped confidence and demand. With inflation still far from the ECB’s goal, President Mario Draghi has flagged interest-rate cuts and the possibility of fresh bond-buying as options to prop up the 19-nation bloc.

Nowotny will be succeeded by Robert Holzmann, an academic who has specialized in labor markets and social security systems.

To contact the reporter on this story: Jana Randow in Frankfurt at jrandow@bloomberg.net

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Craig Stirling

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