European Central Bank Governing Council member Jens Weidmann: the ECB’s low-interest-rate policy for a longer period could lead to a sudden hike in risk premiums

Market news

10 June 2016

European Central Bank Governing Council member Jens Weidmann: the ECB’s low-interest-rate policy for a longer period could lead to a sudden hike in risk premiums

The European Central Bank (ECB) Governing Council member Jens Weidmann said on Friday that the central bank's low-interest-rate policy for a longer period could lead to a sudden hike in risk premiums.

"Monetary policymakers have to take this into account in order to avoid unintended consequences," he added.

Weidmann pointed out that the ECB should consider financial imbalances.

"Monetary policy would be wise to take the implications of financial imbalances for price stability into account," he noted.

U.S. Stocks open: Dow -0.52%, Nasdaq -0.85%, S&P -0.63%

European Central Bank Vice President Vitor Constancio: negative interest rates are positive for banks

Market Focus

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer

Open Demo Account & Personal Page

Personal area

support@teletradepartners.com

Risk Warning: Trading in the financial markets (including trading on margin) provides a wide range of opportunities and enables investors ready to take risks to make high profits, but it carries a potentially high level of risk of loss. Therefore, prior to trading you should take into careful consideration whether such operations are suitable for you in terms of your level of knowledge and financial situation.