ECB’s Villeroy: Maintaining low interest rate environment is completely justified and necessary

ECB governing council member, Francois Villeroy de Galhau crossed the wires in the last hour saying that maintaining a low-interest rate environment is completely justified and necessary in light of the current economic situation.

Additional quotes:

   •  ECB needs time to assess the impact of negative rates.
   •  Monetary policy also has favourable effects for banks
   •  Impact of low-interest rate on banks should neither be ignored nor blow out of proportion.
   •  The main prerequisite for banks to improve profitability is for them to put in place restructuring strategies.