The nearer in Germany has recently enhanced currency loose measters in Germany, and some politicians and scholars believe that this will damage the interests of German banking and ordinary deposers.
The Central Bank of the European President Draghi defending the attitude of the easing policy is quite resolute, and it is said that the European Central Bank’s function is to pursue the price stability of the Eurozone, not for Germany.
At present, the low interest rate policy has hit German depositors and Germany, which is seriously relying on interest income in profits, and German life insurance companies that guarantee the lowest return of the guaranteed investment have also been hit.
The Bavarian Finance Minister, Bavarian, Marcus Zee, recently, said that the European Central Bank monetary policy is eroding the wealth of German depositors.
The European Central Bank comprehensively cut interest rates last month, especially the leading interest rate fell to zero, and will further expand overnight deposits. The question did not weakened.
"We are committed to pursue the price of the entire euro zone, not just Germany. We abide by the law, not to listen to the politician, because we are independent – this is the law stipulated." British "Financial Times" quoted Dragin The challenge of the independent status of the bank will harm the confidence in the euro zone, forcing policy makers to maintain interest rates longer at a lower level. According to the relevant provisions of the EU, the European Central Bank will maintain the stability of the medium-term price of the euro zone as a single policy goal. In fact, the European Central Bank also attaches special attention to the improving the economic growth of the Eurozone by improving financing conditions, as the euro zone economy relies on bank financing.
For a while, the European Central Bank has degraded inflation expectation and borrowing non-essential austerity as two prerequisites to adopt greater strength loose measures. Draghi also said that the low interest rate is not unique to the euro zone, the Fed, the Fed, which is much longer than the European central bank. Although the US pension market and the insurance industry have also been affected, it is different from Germany. The main reason for the pressure in the German pension market and the insurance industry is that the regulatory rules and business models are not monetary policy. Dragi said at the press conference after the recent discipline meeting, the first quarter of this year’s banking lending survey shows that the European district companies have further improved from bank loans, and all types of loans are rising.
The increase in bank loans is mainly due to the low interest rate environment, and the financing demand for investment is increased and the real estate market is warmed. Compared with financing conditions, the inflation expectations of the euro zone are still not optimistic. The data of the EU Statistics, mainly due to the rise in service prices, and the inflation rate of the euro zone rebounded from March to zero.
But Draghi pointed out that based on the current energy futures prices, the inflation rate of the euro zone may revert to the negative residence in the next few months, and it is expected that there is a rebound in the second half of 2016, and further climbing in the next two years.
Draghi said that the low interest rate is determined by low growth and low inflation, which is not caused by monetary policy. He said that 2015 is the first intact year of the European Central Bank’s implementation of negative interest rates, and there is no significant evidence that the negative interest rate has been conducted to the depositors or lenders of the euro zone banking system.
For the European Bank, the practice of negative interest rates is generally positive.
For sustained low inflation, Draghi calls for the market "must have patience." He said that the European Central Bank’s loose monetary policy will support future inflationary changes, and its positive role will be more and more reveal.
According to the European Central Bank judgment, the Eurozone economy will maintain gentle and stable growth. In Draghi, the monetary policy has become the only policy that promotes economic recovery, but it cannot solve some fundamental structural weaknesses in the Eurozone economy.
Draghi pointed out that it is necessary to return the long-term sustainable growth of the Eurozone, not only monetary policy, but also require structural reform, financial policy support, including tax cuts, reduce government expenditure and increase public investment.
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