Interest rates in the euro zone could remain truly low for a considerable length of time, however the European Central Bank's (ECB) ultra-free financial arrangement dangers getting counterproductive, ECB overseeing committee part Klaas Knot said in a meeting distributed on Monday.
"I don't have a gem ball, yet I can't decide out that the present low interest rate condition could last an additional five years", Knot disclosed to Dutch paper De Volkskrant.
"This stresses me, on the grounds that incidentally low interest rates are something very unique in relation to steadily low interest rates."
The Dutch national bank president said the present low rates lead to over the top hazard taking among financial specialists, while more youthful ages then again may feel compelled to continue expanding their investment funds.
"From a large scale monetary point of view that would be bothersome," Knot said.
"Furthermore, it is additionally a case of how our low interest rate arrangement may in the end mess itself up. In the event that individuals start sparing more in light of the low interest rates, this will include further descending weight expansion."
Bunch is a continuous pundit of the ECB's ultra-simple money related approach, and pummeled the bank's new upgrade quantifies prior this year as unbalanced. [nA5N208016]
The Dutchman has more than once said he is anticipating the vital audit of ECB arrangement, guaranteed by its new President Christine Lagarde, and has required the bank to receive a progressively adaptable expansion target.
"The harmony among positive and negative impacts of the low interest rates is moving off course", he told the paper.
"At a specific minute in time we subsequently need to reassess our money related arrangement.