Fiscal policy moves have to accompany ECB action - Nowotny
VIENNA (Reuters) - European Central Bank measures to swell its balance sheet to spur the euro zone economy and avoid low inflation can work only if accompanied by fiscal policy steps, ECB policymaker Ewald Nowotny said on Monday, adding he saw no room to cut rates more.
"In the ECB's view it is sensible from macroeconomic and financial stability aspects to counter a drop in the balance sheet, but everyone must be aware that in the long run this can work and the macroeconomic effects can be positive only in connection with appropriate fiscal policy measures," he told a news conference on the Austrian central bank's semi-annual financial stability report.
(Reporting by Michael Shields and Shadia Nasralla; Editing by Paul Carrel)
