ECB’s Mersch warns against excess liquidity policy becoming ‘permanent feature’
Yves Mersch, a European Central Bank (ECB) executive board member, today called on Europe's banks to make the most of the financing conditions created by the central bank and "revive the flow of credit" in the eurozone.
Mersch told an Institute for Monetary and Financial Stability conference that the successful conduct of monetary policy "must not be used as a pretext for complacency" in other policy areas.
In particular, he said, the ECB's excess liquidity policy – for instance, its long-term
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Monetary Policy
The BoJ’s path to policy normalisation
Will the Bank of Japan be able to normalise monetary policy following its successful exit from negative rates?
Ukraine hikes rates, Serbia and Hungary hold
Worse-than-expected drought affects food inflation in eastern Europe
Peru holds policy rate at 5%
Central bank stays put as inflation accelerates and rate almost reaches same level as the Fed’s
‘Inflation disagreement’ weakens US monetary policy – Fed study
Households’ inflation expectations differ from central bankers’, thus adding to post-Covid momentum
Generative AI can decipher FOMC minute topics – Fed research
Authors say technology could enhance public’s understanding of central banking
ECB cuts rates by 25bp
Eurosystem disinflation “well on track” and council “did not discuss” TPI, says Lagarde
Switzerland cuts rates by 50bp
SNB changes conditional inflation forecast, expects lower inflation compared with September
Brazil raises rates again amid fiscal woes
Central bank tightens policy by 100bp in unanimous decision as inflation continues to overshoot