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Nowotny Says ECB May Cautiously Slow QE At The Start Of Next Year

The European Central Bank may start a very gradual withdrawal of its stimulus at the start of the next year, policymaker Ewald Nowotny said in an interview published Thursday.

"I assume that we will move into a cautious deceleration at the start of the next year," Nowotny, who heads the Austrian central bank," said in an interview to the Austrian business weekly Trend.

It is widely expected that the ECB Governing Council will start its debate on withdrawing its massive stimulus in the policy session due later this month.

Economists widely expect the bank to announce some decision on the same this month, with any step likely to begin at the start of the next year after the existing round of asset purchases are over in December.

Regarding inflation, Nowotny said it is moving in the right direction and the bank targets 1.5 percent for this year.

Quizzed about the crypto-currency Bitcoin, Nowotny cautioned that it was not a currency and was highly speculative and volatile. Bitcoin is not subject to any supervision either and the ECB is discussing the legal constraints linked to Bitcoin, he added.

by RTT Staff Writer

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