ECB’s Yves Mersch in an interview with CNBC says the bank wants to keep its monetary policy effective. Asked about zero interest rates, the official answered “We are concerned that we do the right things in the right moment, and this means we are concerned to keep monetary policy effective.” The official went on to say “Our monetary policy signals are being mainly transmitted through the banking channel” adding “the ECB does not have a religious approach to zero rates.”
Mersch has reservations about large increases in spending as a way out of the crisis, and feels the way fiscal measures taken by governments are being implemented should be looked at.
