De Guindos: Rates are at appropriate level

Wednesday, 09. October 2019 09:57

Luis de Guindos told Market News in an interview that Germany is "much more exposed" to external factors than other Eurozone members. The European Central Bank's vice president noted manufacturing and exports "are clearly underperforming" overall, according to remarks published on Wednesday. He stressed downward revisions for growth still don't account for the possible escalation in trade frictions or a no-deal Brexit but also added the deposit rate's current level of 0.5% under zero is "correct."

Policymakers still have room for taking borrowing costs even lower or boosting bond purchases from €20 billion per month in the so-called quantitative easing program, the ECB's top official hinted, but he reiterated that "other actors" need to step in. "We are not the saviors of the world," he stated, apparently referring to governments.

De Guindos added the euro area needs an independent fiscal authority and warned of emerging side effects of monetary policy.

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