Coene Says ECB’s Monetary Policy Remains Accommodative

Banque Nationale de Belgique SA Governor Luc Coene, comments on European Central Bank monetary policy.

He spoke to reporters in Brussels today.

“With negative real interest rates, monetary policy is still very accommodative and the pace of economic growth in European countries is exceeding potential growth rates, a clear signal that monetary policy is still accommodative.”

“The European Central Bank also takes into account the financial problems which exist, particularly with regard to sovereign debt, because we have taken a couple of non-standard measures such as providing liquidity at fixed rate and for an unlimited period of time, which has even been extended, and the mechanism of bond purchases, which has equally been maintained.”

“That gives an indication that we try to take into account specific elements in certain countries and we don’t believe that an interest-rate increase with 25 basis points is of such a nature that it would stop the recovery at this time.”

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