The euro area is usually no longer the economic headache in which the idea once was, nevertheless the reversal of the European Central Bank’s monetary policy needs to be sustainable, the president of the Eurogroup told CNBC Wednesday.
Given the clear economic improvement inside the euro zone since the debt crisis, some economists along with policymakers have blamed the ECB for keeping its “crisis policy” for too long, potentially creating some financial risks by leaving interest rates low for too long.
However, brand new Eurogroup President Mario Centeno believes the ECB needs to adapt its policy in a way in which protects the ongoing recovery.
“The Great news is usually precisely in which the euro area is usually no longer a problem,” Centeno told CNBC at the planet Economic Forum (WEF) in Davos, Switzerland. “We have 18 consecutive quarters of growth, 7 million-plus jobs in which were created, the economy is usually strong, the political cycle is usually also very strong.”
nevertheless, the Portuguese finance minister said: “If you look at the (economic) cycle, the (monetary) policy during the cycle, Europe commenced a bit later than additional economies into This specific. So I think we are at This specific point looking… to turn in which policy in a very sustained way. the idea has to be sustainable along with the idea has to continue to sustain the recovery.”
The ECB is usually due to meet Thursday nevertheless is usually unlikely to announce adjustments to its current monetary policy so early inside the year. nevertheless analysts foresee policy adjustments at the following meeting in March.