MNI BRIEF: Rates Appropriate If Central Scenario Holds - BoS

Interest rates at 2% are at an appropriate level if the European Central Bank’s central scenario continues to materialise, Bank of Spain Governor Jose Luis Escriva said Monday, noting that quarter after quarter the central bank's projections have been holding.

“That doesn’t mean that rates will be at 2%, but will depend on a lot of how risks materialize to the upside or to the downside,” he said, noting that the European economy, and the Spanish one in particular, is proving extremely resilient to shocks and risks, but could diverge. (see MNI SOURCES: Data-Led ECB To Hold A Cut In Reserve If Needed )

The Spanish economy is also benefiting from upward GDP revisions from earlier years that will push growth 0.3 percentage points from the 2.6% seen in September. Regardless of that revision, early data shows that Q3 was solid, he added.