Economics
ECB’s Visco Draws Line on Cutting Rates Deeper Below Zero
- Says he didn’t support all elements of latest stimulus package
- Cautions about negative consequences of negative rates
This article is for subscribers only.
Italy’s Ignazio Visco jumped into the controversy over the European Central Bank’s recent monetary-stimulus package, saying he didn’t support all its elements, and signaled he would be reluctant to back any further interest-rate cuts.
Speaking on Bloomberg TV on Thursday, the Governing Council member said banks have until now coped well with sub-zero rates because the economic growth they helped foster has made up for any adverse impact. But he cautioned they were a “very unconventional” tool that could eventually backfire.