ECB President Says Money-Market Rates Too High
ECB President Says Money-Market Rates Too High (Reuters)
In anticipation of U.S. Federal Reserve tapering, bank-to-bank borrowing costs have risen. The European Central Bank (ECB) last week issued forward guidance that it could lower its own key interest rates, in order to counteract this rise. “The short-term money market rates at some point in time have been unwarranted and they are and we will continue with the same forward guidance,” ECB President Mario Draghi said Thursday at the official euro entry conference in Latvia, to reinforce this announcement.