ECB’s Mersch warns of negative side-effects of ultra-loose policies

yves-mersch-bcl
Yves Mersch: “This vigilance is particularly warranted in light of some signs that monetary policy is encouraging increased risk-taking”

The European Central Bank’s negative rates and asset purchases may contribute to higher risk-taking, high asset-price inflation and inequality, said Yves Mersch on January 27.

In a speech, the ECB’s executive board member stressed ultra-loose policies are contributing to higher owner-occupied housing costs. Such costs are not included in the institution’s measure of inflation, which could hamper efforts to explain the need for negative rates to the public; many people perceive inflation as way

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 [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: