Comments by ECB vice president, Luis de Guindos
- Low rates create strains on bank profitability
- Also has implications for financial stability
Again, I wouldn't get too ahead of calling for a recovery but yes, economic sentiment hasn't deteriorated any more significantly over the past two months - though the latest PMI readings today suggest that the manufacturing sector is still looking rather dire.
Policymakers in the region have been known to be calling for economic stability and a recovery since the start of 2018 and yet here we find ourselves today.
As for the side effects of NIRP, that will continue to be an interesting discussion going into next year to see if the ECB - especially Christine Lagarde - can defend their stance on maintaining negative rates despite mounting criticism.
