FRANKFURT (Reuters) - Ultra-low interest rates will return to normal levels at some point, a European Central Bank policy setter said on Thursday.
“A situation of low interest rates is something that makes sense for a certain period of time but this world of ultra-low interest rates is not a long-term equilibrium,” said Ewald Nowotny, who as head of the Austrian central bank also sits on the ECB’s policy-setting Governing Council.
“At the end of the day, we will return to, let’s say, normal relationships regarding interest rates,” Nowotny told CNBC television.
“It’s quite clear that, for instance, as we have it in Europe, to a certain extent, negative interest rates are not a normal element of an economy. They may be necessary for a certain period of time but it’s not something that I see as a long-term perspective.”
Reporting By John O'Donnell and Georgina Prodhan; Editing by Toby Chopra