HANDELSBLATT EXCLUSIVE No Plan to Raise Rates for Now, Says ECB Council Member

Erkki Liikanen, the Finnish member of the ECB's governing council, said the central bank will keep interest rates low even after its bond-buying program ends.
Picture

The European Central Bank (ECB) does not plan to increase interest rates for the time being, the Finnish member of the central bank’s governing council, told Handelsblatt.

"We have stated that rates would remain low beyond the end of the [bond] purchases,” Erkki Liikanen said in an interview.

In the past weeks, there has been speculation that the central bank would would raise its punitive deposit rate of -0.4 percent before it ends the bond-buying program.

But Mr. Liikanen said the ECB council members agreed at their March meeting that rates shouldn't be raised for now:  “It has not been contested at the time,” Mr. Liikanen said.

The Finnish ECB council member also reiterated the importance of maintaining “an inflation target close to 2 percent for the euro-area,” though “some countries have been above – some countries have been below.”

 

Read the full interview at Handelsblatt Global on Wednesday.