AIRLINK 200.02 Increased By ▲ 6.46 (3.34%)
BOP 10.23 Increased By ▲ 0.28 (2.81%)
CNERGY 7.83 Decreased By ▼ -0.10 (-1.26%)
FCCL 40.00 Decreased By ▼ -0.65 (-1.6%)
FFL 16.80 Decreased By ▼ -0.06 (-0.36%)
FLYNG 26.50 Decreased By ▼ -1.25 (-4.5%)
HUBC 132.79 Increased By ▲ 0.21 (0.16%)
HUMNL 13.99 Increased By ▲ 0.10 (0.72%)
KEL 4.67 Increased By ▲ 0.07 (1.52%)
KOSM 6.57 Decreased By ▼ -0.05 (-0.76%)
MLCF 46.66 Decreased By ▼ -0.94 (-1.97%)
OGDC 211.89 Decreased By ▼ -2.02 (-0.94%)
PACE 6.89 Decreased By ▼ -0.04 (-0.58%)
PAEL 41.34 Increased By ▲ 0.10 (0.24%)
PIAHCLA 17.02 Decreased By ▼ -0.13 (-0.76%)
PIBTL 8.13 Decreased By ▼ -0.28 (-3.33%)
POWER 9.37 Decreased By ▼ -0.27 (-2.8%)
PPL 181.45 Decreased By ▼ -0.90 (-0.49%)
PRL 41.60 Decreased By ▼ -0.36 (-0.86%)
PTC 24.69 Decreased By ▼ -0.21 (-0.84%)
SEARL 112.25 Increased By ▲ 5.41 (5.06%)
SILK 1.00 Increased By ▲ 0.01 (1.01%)
SSGC 44.00 Increased By ▲ 3.90 (9.73%)
SYM 19.18 Increased By ▲ 1.71 (9.79%)
TELE 8.91 Increased By ▲ 0.07 (0.79%)
TPLP 12.90 Increased By ▲ 0.15 (1.18%)
TRG 67.40 Increased By ▲ 0.45 (0.67%)
WAVESAPP 11.45 Increased By ▲ 0.12 (1.06%)
WTL 1.78 Decreased By ▼ -0.01 (-0.56%)
YOUW 4.00 Decreased By ▼ -0.07 (-1.72%)
BR100 12,170 Increased By 125.6 (1.04%)
BR30 36,589 Increased By 8.6 (0.02%)
KSE100 114,880 Increased By 842.7 (0.74%)
KSE30 36,125 Increased By 330.6 (0.92%)

German Finance Minister Wolfgang Schaeuble warned the European Central Bank on Sunday that a loose monetary policy runs the risk of causing asset bubbles. "We can't just leave the avoidance of bubbles to government supervision," he told the Handelsblatt business daily. "Central banks also need to keep an eye on that in their decisions about the money supply."
Schaeuble, speaking in a joint interview with his French counterpart Michel Sapin, said that "in parts of the property market there are signs that bubbles are forming", reiterating earlier warnings.
But he rejected a French proposal for a targeted depreciation of the euro in pre-release extracts of the interview, which is due to be published in full on Monday.
"I do not believe in political discussions about the exchange rate, which is set by the market," he said, adding that government intervention had "never led to a good result".
Schaeuble backed the European banking union as a big step in the right direction and said he did not foresee major problems in the "stress tests" of the bloc's banking sector.
The EU's banking union, which is expected to become operational in November, will give the ECB the power to supervise eurozone banks and prevent bank failures.
"The examination of assets and the stress test are not yet completed. But the banks have raised a lot of extra capital," he said, adding that now "the risk of contagion is much smaller".
Sapin, meanwhile, stressed that Paris is committed to the strict deficit rules laid out in the European Stability Pact.
"The rules exist, the treaties exist. Nobody is challenging them, and I would not recommend it to anyone, especially not in France," he said.
"I want to stick to the European rules and, together with partners, find the right timing to lower our spending and deficits and at the same time support growth."
He also spoke out for the French candidacy for European economic commissioner, saying "it is legitimate that France holds an important position within the Commission".

Copyright Agence France-Presse, 2014

Comments

Comments are closed.