Draghi: low interest rate risk for financial markets – z24

ECB president Mario Draghi. Photos EPA

The incentives of the European Central Bank (ECB) help the European economy Ahead. very low interest rates, however, brings with it risks for the stability of the financial system, which should be closely monitored

.

That said ECB president Mario Draghi Saturday in Washington.

“We see that our actions have an effect on the economy,” Draghi said. “We also know that the low interest rate a fertile ground for instability in the financial markets. We keep a sharp eye.”

Draghi stressed that the measures directly related to the mission of the ECB to ensure stable prices, with the target for inflation is set at slightly less than 2 percent. “That is the best service that we can provide the economy, both to consumers and savers. If the recovery continues and employment increases, so does the interest again. “

Fear of bubbles

Both the International Monetary Fund (IMF) and De Nederlandsche Bank (DNB) warned last week to the problems that the low interest saddle insurers and pension funds. Furthermore, they fear for equity bubbles and bond markets, where the search for yield rates has rushed quickly.

Draghi said that the growth of the international economy recovers slowly, but still far from exuberant. He pointed out that most of the growth still comes from the United States. “The eurozone is slowly after the deep recession, but we can not yet speak of an energetic growth. The recovery is gradually during the year somewhat stronger. “

World economy too dependent on US

The ECB president spoke on the sidelines of the spring meeting of the IMF. Since the US Treasury Secretary Jack Lew warned earlier in the day that the world economy is still too dependent on the US He called on other countries have to do more to boost their domestic demand.

He pointed specifically to Germany. This country deserves a lot of international trade, but according to Lew does too little to stimulate demand in their own country. Following the IMF finds that Germany must Lew stabbing more money in its infrastructure.

Consequences Greek crisis uncertain

Draghi kept aloof about the financial problems of Greece. Europe is now more resistant to an escalation of the economic crisis in Greece a few years ago, but the actual impact is difficult to estimate, Draghi said.

“We are better prepared than in 2010, 2011 and 2012, “Draghi said about the possible consequences of the Greek problem for the other euro countries. “We now have more tools available. Those are actually for other purposes, but can also be used in times of crisis. If the crisis continues, however, we come into unknown territory. It is too early to speculate about that. “

Draghi stressed that the Greek government repeatedly promises to fulfill its obligations. He called the Greeks therefore talks with lenders about the approach of the economy to continue as quickly as possible. An agreement with the euro countries must ensure that Greece again can count on emergency loans.

Greek shadow over meeting

The persistent problems of Greece were not explicitly on the spring meeting of the IMF agenda, but it cast a shadow over the meetings. For example, the US Treasury Secretary Jack Lew warned that a new Greek crisis by all the uncertainty that arises then, worldwide may affect economic growth.

IMF Christine Lagarde said topvrouw after the economic summit again that the euro countries and the Fund are flexible with respect to the measures that the Greek government can take to achieve the set economic goals. She said that while “everyone, on all fronts” should contribute to an agreement