Low rates are here to stay, ECB tells bankers

Madrid

THE European Central Bank (ECB) is set to keep its interest rates low until it gets inflation back to its target, its chief economist said on Tuesday, arguing it was not up to the institution to shore up meagre bank profits.

Banks have complained that ultra-low ECB rates are eating into their lending margins, particularly in countries where cash is abundant and competition fierce such as Germany.

Peter Praet acknowledged the banks' complaints but said the ECB would stick to its ultra-easy policy, which includes a char…