ECB’s Nowotny: would support mitigating side effects of negative rates

ECB Governing Council member Nowotny addresses a news conference in Vienna
European Central Bank (ECB) Governing Council member and OeNB Governor Ewald Nowotny addresses a news conference in Vienna, Austria March 28, 2019. REUTERS/Leonhard Foeger

March 28, 2019

VIENNA (Reuters) – European Central Bank policymaker Ewald Nowotny said on Thursday that he would favor some measures to mitigate the unintended side effects of negative rates.

“There are attempts to have a discussion around negative interest rates,” Nowotny said. “I would like to see a certain mitigation.”

ECB President Mario Draghi said on Wednesday that the ECB would study whether there were such side effects and whether they needed to be offset.

(Reporting by Kirsti Knolle; Writing by Michelle Martin; Editing by Balazs Koranyi)

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