FILE PHOTO: Benoit Coeure, board member of the European Central Bank (ECB), is photographed during an interview with Reuters journalists at the ECB headquarters in Frankfurt, Germany, May 17, 2017. Picture taken May 17, 2017. REUTERS/Kai Pfaffenbach/File Photo
May 16, 2019
FRANKFURT (Reuters) – The growing share of the services sector in the euro zone economy is the culprit behind the slower transmission of monetary policy but the impact of ultra-low borrowing costs has not declined, ECB board member Benoit Coeure said on Thursday.
“Services deepening implies that monetary policy takes more time to be transmitted to inflation, but its effectiveness has not diminished,” Coeure said in Geneva. “The effects of monetary policy take longer to pass through the economy but they have not become less powerful.”
(Reporting by Balazs Koranyi; Editing by Toby Chopra)