Economics
ECB Shouldn’t Be Guided by Its Own Profitability, Simkus Says
- Official wants balance-sheet talks focused on policy stance
- Governing Council likely to discuss issue next week in Cyprus
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The European Central Bank shouldn’t let concerns about its profitability obstruct decision-making over monetary policy, according to Governing Council member Gediminas Simkus.
With interest rates exiting years stuck below zero to battle record inflation, the ECB and the region’s national central banks are paying millions of euros in interest on cash parked by commercial lenders in deposit accounts.