‘Desperate’ ECB Risks Destroying European Project with Negative Rates, Warns Deutsche Bank

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”.

Continue Reading at Telegraph.co.uk…