ECB’s Gonzalez-Paramo Says Interest Rates ‘Sufficiently Low’

European Central Bank Executive Board member Jose Manuel Gonzalez-Paramo said the bank considered yesterday that benchmark interest rates were “sufficiently low in the current situation.”

Leveraging the European Financial Stability Facility is being debated, within the context of legal limits, he said in an interview with Intereconomia radio in Madrid today.

“We are having that debate: how to leverage the fund with the limits imposed by the union’s treaty and the legal limits, among which that of a central bank not financing governments directly,” he said.

The idea of a Greek default is still “absurd,” he said.

To contact the editor responsible for this story: Emma Ross-Thomas at erossthomas@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.