The normalization of the monetary policy of the European Central Bank after a long period of very low interest rates is necessary and must be done in a sustainable way, strengthening the intervention capacity of the ECB, said the member of the Board, Mario Senteno.
With inflation soaring to a record 7.5% in the eurozone, well above the ECB’s target of 2%, policymakers are increasingly in favor of a speedy withdrawal of the support program, and many want an increase in interest rates in July.
“If the smoothing is done with the sustainability we all want, and the ECB is working on it, it will mean increased central bank intervention capacity in the short and long term,” Senteno told reporters.
“Low interest rates are a reality that will end soon,” he said, adding that economic actors should take this into account.
Source: Capital
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