Stark: Rates too low for too long could have many negative side effects

While Stark, the ECB chief economist, said earlier that now is not the time to begin exit strategies, the market is paying attention to his comments that keeping rates too low for too long could have serious negative side effects.

Chief among them, presumably is inflation, though he does not say. Asset bubbles are another distinct possibility.

UPDATE: Stark explicitly mentioned the risk of asset bubbles later in the day…

EUR/USD is edging higher, now in the 1.46-teens., an area where the BIS sold earlier.