You are here
Easy ECB policy "vital" for growth and banks' health
[FRANKFURT] The European Central Bank's commitment to push up inflation through an easy monetary policy is "vital" for the region's economy and the health of its banks, ECB executive board member Benoit Coeure said on Wednesday.
Mr Coeure said the ECB is aware of concerns that ultra-low rates may put pressure on bank margins, but argued that firms have so far been able to protect their income and, in any case, restoring economic growth is vital for the banking system as a whole.
"We have seen from the recent sharp fall in bank equity prices that the sector is highly sensitive to a weaker-than-expected economic outlook," Mr Coeure said at an event in Frankfurt.
"In that context, our commitment to our price stability mandate is vital to anchor expectations of nominal growth."