BERLIN (Reuters) – The European Central Bank’s low interest rate policy is causing problems for savers and thought should be given to curbing its duration, Annegret Kramp-Karrenbauer, leader of Germany’s Christian Democrats (CDU) said in a newspaper interview.
Kramp-Karrenbauer, who succeeded Chancellor Angela Merkel as CDU leader in December, stressed in the interview with the daily Frankfurter Allgemeine Zeitung that the ECB is independent and should remain so, focused on its price stability mandate.
Time - Future - Interest - Rate - Phase
“At the same time, one has to look for the future at whether the low interest rate phase should not, nonetheless, be curbed a bit,” she said in the interview, published in Monday’s edition of the newspaper.
“Because the effect of these low interest rates is problematic, among other things because people with conventional savings deposits – including many in Germany – do not benefit from them,” added Kramp-Karrenbauer, Merkel’s heir apparent.
Yields - Capital - Europe - Policy
“And when yields are so low, capital flows out of Europe. That is why we must ensure we continue to have leeway in monetary policy, but at the...
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