Bini Smaghi-Markets should not mix signals on ECB exit

FRANKFURT Nov 20 (Reuters) - Financial markets should not assume that by removing some of its crisis measures, the European Central Bank is preparing to raise interest rates, Executive Board member Lorenzo Bini Smaghi said on Friday.

"Given that the exit will be gradual and will involve two dimensions, i.e. the non-standard measures implemented by central banks and the level of interest rate, there is a risk that market participants might interpret a decision about one part of the exit as paving the way for the rest," Bini Smaghi said in a speech given in Paris and published on the ECB's Web site.

The ECB has cut its main refi rate by 325 basis points to 1.0 percent since the intensification of the financial crisis.

(To read speech please click here) (Reporting by Marc Jones and Krista Hughes)