Berlin, Feb 13 (EFE) .- The French member of the executive committee of the European Central Bank (ECB), Benoît Coeuré, said today that the aim of the institution it is not that the current phase of low interest rates become normal, but stressed the need to keep inflation to raise and protect recovery.
in an interview with the German newspaper “Rheinische Post” explains that low interest rates will remain “long enough”, that is, until the inflation rate closer to the target of 2%.
As noted, new downside risks are detected, mainly by falling oil prices and the decline in global growth, to which volatility is added in the financial markets in recent days.
“If this continues for too long, can increase the risk of that rising inflation is delayed, “he said recalling that the ECB will present its new projections in March.
his advice to the governments of the eurozone area is to use the savings being achieved by the low cost debt on measures to promote growth, as cuts in taxes on labor income, incentives for private investment or deficit reduction if necessary.
Asked whether the ECB is willing to more expansionary to prevent a possible deflation policy, insists that depend on the overall development.
“If necessary we are ready to use all instruments at our disposal,” including the policy types and size ., the composition and duration of asset purchases, says Coure to emphasize that a decision will be taken in March
Get away from the expansionary monetary policy, he added, requires national policies that support growth; “If that does not happen, we will have to keep rates low for a long time.”
Coeuré relates widespread stock market declines of the last few days to several factors, such as investor concerns to a slowing economy world, especially in China, the uncertainty about the impact of low oil prices and questions about the profitability of the banking sector
in his view, European banks are in a “much better “during the height of the debt crisis-in 2011 and 2012 and the challenge now is to address low profitability, also related to the current level of growth.
Do not forget that there are also banks inherited high delinquency crisis level, but remembered all these problems have been identified and considered that what is required is “decisive action” to solve them.
noting that the euro area is growing between 1% and 1.5%, helping the banking recovery, rule out a new financial crisis if that path is maintained.
Before the case of Greece, calls on the country to meet commitments acquired for the third package of aid and does not mix the refugee crisis in the debate.
“it is in the interest of the Greek economy strengthens her, regardless of the question of refugees. For example, should, in any event, ensure the sustainable reform of its pension system.
“Experts of the European Commission, the ECB and the International Monetary Fund (IMF) has had productive talks in Athens but we are not yet where we want to be, “said
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