by Szu Ping Chan
The European Central Bank’s loose monetary policy risks destroying the European project, Deutsche Bank has warned.
In a blistering attack, Deutsche suggested the ECB had “los[t] the plot” and that its “desperate” actions raised the risk of a potentially “catastrophic” mistake by the central bank.
David Folkerts-Landau, Deutsche’s chief economist, said negative interest rates and quantitative easing had hurt savers and allowed politicians to delay badly-needed structural reforms.
“ECB policy is threatening the European project as a whole for the sake of short-term financial stability,” he said in a note titled “The ECB must change course”.