European Central Bank (ECB) Governing Council member and Bank of Austria governor Ewald Nowotny said that the ECB may lower its economic growth estimates for the Eurozone at its next monetary policy meeting on September 6th.

In June, the ECB reiterated its forecast for a 0.1% contraction in 2012 but lowered its 2013 growth estimate from 1.1% to 1%.

"There won't be an improvement, but more of a worsening of expectations," Nowotny told reporters on Thursday.

"The differences in growth rates between the North and the South will unfortunately increase - we are expecting negative growth, a retraction in all southern countries for 2012 and a stagnation in France."

Nowotny called for caution in a clear reference to the upcoming decision on sovereign bond purchases: "Uncertainty is increasing massively and I think it is important that in a sensitive situation like this, every step of monetary and economic policy is taken with great caution."

MG

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