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Fed Rate Rise Would Be Good News for Global Economy, Says ECB's Constâncio

DOW JONES & COMPANY, INC. 9:32 AM ET 5/24/2016

FRANKFURT--A rate increase by the U.S. Federal Reserve would be good news for the world economy and demonstrate that central-bank stimulus policies are working, the European Central Bank's Vice President Vítor Constâncio said Tuesday.

"As a whole, I consider that if the Fed considers it [is] justified to increase rates, it is good news for the world economy," Mr. Constancio said at a news conference here, where he was presenting the eurozone central bank's biannual report on financial-sector risks.

A U.S. rate rise would be "proof that [the Fed] was effective in stimulating the recovery and news for the world that a country will be able to get away from zero lower bound," Mr. Constancio said.

rite to Tom Fairless at [e-mail]


(END) Dow Jones Newswires
05-24-160932ET
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