Christian Ossig, chief executive of the Association of German Banks, comments on today’s ECB Governing Council meeting

25 January 2018

“The European Central Bank has today passed up the chance to send a fresh signal pointing towards monetary policy normalisation. Instead, it remains in deep crisis mode. This course has to end in the foreseeable future, as the present situation is one of stark contrasts: whilst a strong economic upturn is underway in the eurozone and the inflation rate moved well clear of the zero mark a year ago, the ECB continues to pump billions in additional liquidity into the markets every month. Moreover, the negative interest rate it charges on deposits is a drag on eurozone banks’ earnings, currently to the tune of around € 7.5 billion annually. This is money that the banks could put to much better use elsewhere – for example, bolstering their balance sheets or investing even more in digitisation.”

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