ECB’s Holzmann says low rates harmful in long term

FILE PHOTO: Specialists work on a crane in front of the European Central Bank (ECB) in Frankfurt
FILE PHOTO: The European Central Bank logo. Frankfurt, Germany, January 23, 2020. REUTERS/Ralph Orlowski/File Photo

September 16, 2020

FRANKFURT (Reuters) – Low or negative interest rates harm the economy in the long term by curbing productivity, fuelling asset-price bubbles and fostering inequality, European Central Bank policymaker Robert Holzmann said on Wednesday.

“Many of us, I think, believe that in the medium and, in particular, long term, low interest rates and, in particular, negative interest rates are harmful,” Holzmann, an outspoken hawk who heads the Austrian central bank, said in an online forum.

(Reporting By Francesco Canepa and Balazs Koranyi)