ECB governing council member, Francois Villeroy de Galhau crossed the wires in the last hour saying that maintaining a low-interest rate environment is completely justified and necessary in light of the current economic situation.
“¢ ECB needs time to assess the impact of negative rates.
“¢ Monetary policy also has favourable effects for banks
“¢ Impact of low-interest rate on banks should neither be ignored nor blow out of proportion.
“¢ The main prerequisite for banks to improve profitability is for them to put in place restructuring strategies.