Coeure Says Possible U.S. Rate Rise Would Be Good for Global, Eurozone Economies

By Todd Buell 

        A possible rate rise by the Federal Reserve would signal that the U.S. economy is doing well and this would be good for both the global and eurozone economies, said Benoit Coeure, an executive board member of the European Central Bank, in German newspaper Boersen-Zeitung.
        He also said that the Chinese decision to devalue the yuan meant the country was moving in the direction of a more market-based exchange rate system, which he saw favorably.
        "Fundamentally, it means a step toward an exchange rate system which is more strongly determined by the markets. That is generally a good thing, " he said. "I trust the Chinese authorities not to use the exchange rate as a policy instrument," he added.
        Speaking about ECB policies, Mr. Coeure said that ECB measures are "gradually finding their way into the provision of credit and the real economy, even if only slowly. We therefore want to keep a steady hand."
        He said the ECB would only feel compelled to act again "if there was a fundamental change in the economic situation or the monetary stance was materially altered because of developments in the markets--for example, in the event of a sharp increase in long-term bond yields."
        But he said, "so far, I am not worried by what I am seeing."
        The comments come on the same day that official data showed the eurozone economy grew 0.3% in the second quarter, somewhat below economists' expectations. The result might put pressure on the ECB to signal willingness to do more to support the economy, said some observers.
        Write to Todd Buell at todd.buell@wsj.com
        (END) Dow Jones Newswires

        August 14, 2015 12:19 ET (16:19 GMT)