Greece economy in sharp downturn over past 3 months: EU

Greece's economy suffered an alarming slump in the first three months of 2015, the European Commission said on Tuesday, in a dangerous development as Athens continues to battle its EU-IMF creditors. 

PHOTO: REUTERS

5 May5:11 PM

[BRUSSELS] Greece's economy suffered an alarming slump in the first three months of 2015, the European Commission said on Tuesday, in a dangerous development as Athens continues to battle its EU-IMF creditors.

In its Spring forecasts, the EU executive slashed its overall 2015 growth forecast for Greece to 0.5 per cent, a huge reduction from its earlier prediction of 2.5 per cent.

AFP

Diverging monetary policies a risk of instability: ECB's Noyer

ECB governing council member Christian Noyer warned on Tuesday that diverging euro zone and US monetary policies could present a risk of instability for jittery financial markets. 

PHOTO: AFP

5 May4:11 PM

[PARIS] ECB governing council member Christian Noyer warned on Tuesday that diverging euro zone and US monetary policies could present a risk of instability for jittery financial markets.

Mr Noyer, who is also governor of the French central bank, said the divergence had emerged as the US Federal Reserve looked to begin withdrawing its exceptional monetary stimulus while the European Central Bank had committed to keeping interest rates durably low. "It (the divergence) can be a cause of instability as markets react instantly to any new information and their impact on monetary policy," Mr Noyer told journalists at a news conference.

Mr Noyer also said that exceptionally low interest rates warranted great vigilance towards the risks of financial market volatility.

REUTERS