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16 May 2014
ECB's Coeure: Low rates pose risks but there are tools to address them
FXStreet (Łódź) - ECB Executive Board member Benoit Coeure said on Friday that the economic recovery in the Eurozone had to be supported by low interest rates to advance. He recognized that maintaining this state for a long period of time created risks, but assured that the central bank could use various tools to address them.
“We know with ample liquidity and very low interest rates there would be financial market risks," Coeure said, speaking on panel at a conference in Warsaw. "We have instruments to avoid them so it is not an issue in principle."
The ECB Executive Board member also said that the impact of the banking union would be seen after some time and added that the EU got down to repairing its financial institutions quite late.
EUR/USD fell to a session low of 1.3692 during Coeure's speech.
“We know with ample liquidity and very low interest rates there would be financial market risks," Coeure said, speaking on panel at a conference in Warsaw. "We have instruments to avoid them so it is not an issue in principle."
The ECB Executive Board member also said that the impact of the banking union would be seen after some time and added that the EU got down to repairing its financial institutions quite late.
EUR/USD fell to a session low of 1.3692 during Coeure's speech.