The European Central Bank has a close eye on financial markets because a sudden rise in real interest rates could pull the rug out from under the economic recovery, Executive Board Member Isabel Schnabel said.
“We will ensure that there is no unwarranted tightening of financing conditions,” she told LETA in an interview published Thursday. “A too abrupt increase in real interest rates on the back of improving global growth prospects could jeopardize the economic recovery. Therefore, we are monitoring financial market developments closely.”
