Gonzalez Paramo-Withdrawal of measures no signal for rates

BRUSSELS, Nov 10 (Reuters) - Moves by the European Central Bank to withdraw emergency measures put in place over the crisis should not be seen as a signal it will raise interest rates, Executive Board member Jose Manuel Gonzalez-Paramo said on Tuesday. "Our preparations for a gradual exit from these measures, however, do not suggest that fundamental change in policy is imminent," Gonzalez-Paramo said in the text of a speech to be given to a European Parliament committee. He added the ECB's support measures would be taken away in a gradual and timely manner, and raised two potential options of how the ECB could manage its 60 billion euro covered bond purchase plan. "There is no particular need to dispose of the purchased bonds at any future moment in time, as it does not interfere with monetary policy implementation." "We could therefore decide to hold the portfolio until maturity and let it gradually shrink over time as a result of redemptions. Alternatively, the portfolio could be disposed of in a gradual way that would make it possible to avoid market distortions," he said. (Reporting by Marc Jones) Keywords: ECB/GONZALEZ PARAMO ([e-mail]; [phone]; reuters messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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