8 Jul 2013
ECB's Draghi: Higher interest rates now warranted currently
FXstreet.com (Barcelona) - ECB President Mario Draghi addressed the Committee on Economic and Monetary Affairs of the European Parliament in Brussels on Monday, focusing on the functions of the European Systemic Risk Board, of which he is also the head and which supervises the macroprudential oversight of the Eurozone's financial system.
Draghi emphasized the importance of macroprudential policy for financial stability in the EU and signalized that the central bank was prepared to use its power more frequently.
Furthermore, the ECB head stressed the fact that fiscal consolidation was unavoidable and that Portugal, where the economic situation continues to be “stressed,” should make it more conducive to growth. He also praised Spain's efforts in cutting private debt.
When asked about forward guidance on ECB's interest rates, introduced last week, Draghi agreed that keeping them low for an extended period of time could pose risks, but said that higher rates weren't warranted at present and could destabilize weak EU economies.
Draghi emphasized the importance of macroprudential policy for financial stability in the EU and signalized that the central bank was prepared to use its power more frequently.
Furthermore, the ECB head stressed the fact that fiscal consolidation was unavoidable and that Portugal, where the economic situation continues to be “stressed,” should make it more conducive to growth. He also praised Spain's efforts in cutting private debt.
When asked about forward guidance on ECB's interest rates, introduced last week, Draghi agreed that keeping them low for an extended period of time could pose risks, but said that higher rates weren't warranted at present and could destabilize weak EU economies.