Low ECB rates for too long a risk: Stark

11 Oct, 2010

Keeping eurozone interest rates low for too long poses serious risks to the economy and price stability, European Central Bank Executive Board Member Juergen Stark was quoted as saying in an interview on Sunday.
"We are fully aware that maintaining an accommodative monetary policy stance for too long can pose serious risks to our economy and, ultimately, to price stability over the medium term," Stark said according to the online version of Emerging Markets magazine.
Inflation rates in the eurozone were likely to remain moderate but the risks to the outlook were "slightly tilted to the upside," he added.

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