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ECB policymakers say rates near bottom even if recovery is disappointing

ECB has cut rates aggressively, giving banks super cheap loans and pumping over a trillion euros into economy through assets purchases

Reuters  |  Frankfurt 

European Central Bank interest rates are probably close to the bottom, even though the bank had hoped the euro zone economy would respond better to its stimulus measures, two top policymakers said on Friday. With ECB rates now well into negative territory, the potential for detrimental side effects are increasing as they cut into banking profitability and raise the risk of asset bubbles and market distortions, the policymakers said. "Nominal interest rates are now probably close to the low point, which doesn't imply they will rebound soon," French central bank chief ...

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First Published: Fri, September 23 2016. 13:55 IST