Eurozone to keep low interest rates: Draghi
2013-07-09 16:34:45
European Central Bank (ECB) President Mario Draghi on Monday said the Eurozone countries interest rates will keep low to help steering their economy out of weakness.
Speaking at the European Parliament's Economic and Monetary Affairs Committee, Draghi said "higher interest rates in a weak economic situation would destabilize a country making the life of your counter-parties even more difficult. Higher interest rates would not be warranted at this point in time."
He noted that loose monetary policy has supported economic recovery in the Eurozone.
In addition, Draghi called the Eurozone countries to keep structural reforms with fiscal consolidation.
He emphasized,"We know that fiscal consolidation was, and still is, unavoidable."He described Portugal as "just one of the examples" in which consolidated budgets have driven country into stressed situation.
He suggested that fiscal consolidation "should be made growth-friendly".
At last, he considered the establishment of a Eurozone banking union a key measure to recover the bloc's credit market.
He noted that the ECB has "tried everything" to get banks to lend.