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ECB will keep cutting rates and focus shifting to growth, VP says

BY Reuters | ECONOMIC | 03:12 AM EST

FRANKFURT, Nov 26 (Reuters) - The European Central Bank will keep cutting interest rates as inflation falls and its focus is slowly shifting to growth, which is proving fragile, ECB Vice President Luis de Guindos told a Finnish newspaper.

"Concerns about high inflation have shifted to economic growth," Helsingin Sanomat quoted de Guindos as saying. "The trajectory of our monetary policy is clear - if our projections are confirmed, we will continue making our monetary policy stance less restrictive." (Reporting by Balazs Koranyi; Editing by Andrew Heavens)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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