Back
20 Sep 2013
Erkki Liikanen: the ECB should not take responsibility for bad banks. Rates to stay low.
FXstreet.com (London) - Erkki Liikanen: the ECB should not take responsibility for bad banks. Rates to stay low.
Finland central bank governor, and European Central Bank (ECB) Governing Council member Erkki Liikanen said today that the ECB should not take on the over-arching responsibility to wind down non-viable banks as part increasing centralisation of the European financial system.
Speaking to Finnish television broadcaster MTV3, Liikanen also said that the ECB should keep interest rates held down for a longer period. “When price stability is secure, we can use monetary policy tools to support economic growth and employment. We have said interest rates will stay at the current or lower level for a longer period.”
The ECB has held base rates down at historic lows of 0.5 percent since May, joining the US Federal Reserve and the Bank of England on a programme of ultra-loose monetary policy aimed at stimulating growth.
Liikanen repeats early statements given in a report by the Bank of Finland that: "The Governing Council will also remain particularly attentive to the implications that changes in excess liquidity may have for the stance of monetary policy."
EUR/USD currently stands at USD1.3545 after climbing sharply on the FOMC’s decision not to taper its monthly asset purchase programme earlier this week.
Finland central bank governor, and European Central Bank (ECB) Governing Council member Erkki Liikanen said today that the ECB should not take on the over-arching responsibility to wind down non-viable banks as part increasing centralisation of the European financial system.
Speaking to Finnish television broadcaster MTV3, Liikanen also said that the ECB should keep interest rates held down for a longer period. “When price stability is secure, we can use monetary policy tools to support economic growth and employment. We have said interest rates will stay at the current or lower level for a longer period.”
The ECB has held base rates down at historic lows of 0.5 percent since May, joining the US Federal Reserve and the Bank of England on a programme of ultra-loose monetary policy aimed at stimulating growth.
Liikanen repeats early statements given in a report by the Bank of Finland that: "The Governing Council will also remain particularly attentive to the implications that changes in excess liquidity may have for the stance of monetary policy."
EUR/USD currently stands at USD1.3545 after climbing sharply on the FOMC’s decision not to taper its monthly asset purchase programme earlier this week.