ECB’s Villeroy: Maintaining low interest rate environment is completely justified and necessary

Haresh Menghani FXStreet

ECB governing council member, Francois Villeroy de Galhau crossed the wires in the last hour saying that maintaining a low-interest rate environment is completely justified and necessary in light of the current economic situation.

Additional quotes:

• ECB needs time to assess the impact of negative rates.
• Monetary policy also has favourable effects for banks
• Impact of low-interest rate on banks should neither be ignored nor blow out of proportion.
• The main prerequisite for banks to improve profitability is for them to put in place restructuring strategies.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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