After Mario Draghi’s speech, don’t presume Eurozone interest rates to be going up in the near future. The head of the European Central Bank said on Wednesday that it was too early to announce victory in the ECB efforts to boost the economic recovery of the region and push up the very low levels of inflation.
He told a session of the Dutch Parliament’s Lower House that the region’s recovery has progressed from being uneven and fragile into a solid, broad-based upswing. However, Draghi continued to say that he is still concerned about wage growth and job creation.
Some of the richest Eurozone countries- like the Netherlands and Germany- have said that they’d prefer if the ECB reduced its monetary stimulus measures which are currently pushing billions into the region’s economy. They also want ECB to start increasing borrowing costs.
During Wednesday’s session, several Dutch lawmakers gave Draghi a hard time. One of them was Tony van Dijck who criticized the continued low interest rates and denounced the head of the ECB of depriving people on their savings stating that he is not considered a hero in the Netherlands.
Draghi calmly responded to the accusations by saying that the monetary stimulus has in fact benefited people and the Eurozone economy by boosting employment. He claimed that the ECB stimulus’ benefits are greater than its negative effects, but still recognized the increase in property prices and the rising household debt in some countries, including the Netherlands.
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