Diverging monetary policies a risk of instability: ECB's Noyer
[PARIS] ECB governing council member Christian Noyer warned on Tuesday that diverging euro zone and US monetary policies could present a risk of instability for jittery financial markets.
Mr Noyer, who is also governor of the French central bank, said the divergence had emerged as the US Federal Reserve looked to begin withdrawing its exceptional monetary stimulus while the European Central Bank had committed to keeping interest rates durably low. "It (the divergence) can be a cause of instability as markets react instantly to any new information and their impact on monetary policy," Mr Noyer told journalists at a news conference.
Mr Noyer also said that exceptionally low interest rates warranted great vigilance towards the risks of financial market volatility.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
China central bank says treasury bond trading will be two-way
US wholesale inventories drop by unrevised 0.4% in March
China, Serbia chart ‘shared future’ as Xi Jinping visits Europe
World extends run of heat records for 11th straight month
SpaceX’s unit Starlink secures Indonesia operating permit
Axiata, Sinar Mas seek permission for Indonesia telco merger, minister says