ECB governing council member Christian Noyer warned on Tuesday that diverging eurozone and US monetary policies could present a risk of instability for jittery financial markets, Reuters reported. Noyer, who is also governor of the French central bank, said the divergence had emerged as the US Federal Reserve looked to begin withdrawing its exceptional monetary stimulus while the European Central Bank had committed to keeping interest rates durably low. “It (the divergence) can be a cause of instability as markets react instantly to any new information and their impact on monetary policy,” Noyer told journalists at a news conference.
