ECB outlook supported by rise in Germany's industrial production
German industrial production rose more than expected in October, supporting the European Central Bank's forecast that European growth will accelerate through next year. Production at German factories, utilities, construction sites and mines gained 1.1 percent from September, when it jumped 1.5 percent, the Economy and Technology Ministry said today. ECB Chief Economist Otmar Issing also today said the bank expects economic growth to strengthen and inflation risks to rise in the euro-area. An economic revival in Germany, Europe's largest economy, may give the ECB room to raise interest rates again after the first increase in five years on December 1st. The European Central Bank (ECB) today published its December 2005 Financial Stability Review.
The review, which has been published biannually since December 2004, assesses the stability of the euro area financial system with regard to both the role it plays in facilitating economic processes and its ability to prevent adverse shocks from having an inordinately disruptive impact. The purpose of publishing this review is to promote awareness in the financial industry and among the public of issues relevant to safeguarding the stability of the euro area financial system. By providing an overview of sources of risk and vulnerability with regard to financial stability, the review also seeks to play a role in preventing financial crises.
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