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PHOTO FILE: Ewald Nowotny, member of the Governing Council of the European Central Bank (ECB) and governor of OeNB, speaks at a press conference in Vienna, Austria, on 28 March 2019. REUTERS / Leonhard Foeger
ZURICH (Reuters) – European Central Bank chief Ewald Nowotny said on Saturday that he expected interest rates to be lower in the long run than in the past.
"In the long run, we should strive to have a normalization," Nowotny said in an interview on Austrian radio.
"We will probably have a level of interest rates somewhat higher than it is today, but still lower than the one we've got used to since older times," he said. he told the "Midday Journal" of the ORF1.
Earlier in the week, ECB President Mario Draghi announced a new wave of monetary easing as the economic outlook worsens. Central bank staff are being asked to prepare options, opening the door for possible rate cuts and more bond purchases in September.
Nowotny, who is retiring as governor of the Austrian central bank and will be replaced later this year by Robert Holzmann, also said Brexit would hurt the UK more than the rest of Europe.
"The main negative effects will be felt by Britain," he said, adding that Austria would have "little effect" of the Brexit, while the damage to the rest of the country will continue. EU would be "relatively small".
Reportage of John Miller; Edited by Clelia Oziel
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