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ECB's Coeure sees short term interest rates at "very low levels"

Reuters  |  PARIS 

(Reuters) - Short term interest rates are to remain at "very low levels" in the zone, (ECB) said on Monday.

"It is very clear to us that short term interest rates, the ones that are controlled by the central bank, will remain at very low levels, far beyond the horizon of our asset purchases," Coeure told French radio Business.

Last week, the ECB dropped a long-standing pledge to increase its bond buying if needed, taking another small step in weaning the zone off its protracted programme of monetary stimulus.

Coeure said the exact timeframe and modalities of an exit from that programme of stimulus had not been yet debated.

"Inflation is not quite where we would like it to be," he added, regarding the ECB's inflation target.

The ECB has a target of inflation being below, but close to, 2 percent over the medium term.

Coeure also said the council of governors did not discuss a scenario under which a first rate hike in the zone could take place in mid-2019.

(Reporting by and Matthias Blamont; Editing by Leigh Thomas)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, March 12 2018. 12:54 IST