Posted by WARREN MOSLER on March 29th, 2010
ECB’s Liikanen Says Interest Rates Won’t Stay Low
By Diana ben-Aaron
March 29 (Bloomberg) — European Central Bank Governing Council member Erkki Liikanen said interest rates won’t stay at the current level indefinitely, Maaseudun Tulevaisuus reported, citing an interview.
While low rates have eased the economic slowdown, households and businesses shouldn’t count on them forever, Liikanen was quoted as saying by the Helsinki-based newspaper. He declined to say when or by how much rates would increase.
“We decide the key central bank rate in the ECB council according to the requirements of the economic situation,” Liikanen said.