BERLIN (Reuters) - German Finance Minister Wolfgang Schaeuble told The European magazine that he favoured a normalisation of the inflation rate so that the European Central Bank could gradually withdraw from its ‘unusual monetary policy’.
Schaeuble said it would be better if Europeans increased competitiveness by introducing structural reforms.
“A normalisation of the inflation rate is also desirable so that we gradually get out of the ‘unusual monetary policy’,” Schaeuble told the magazine in an interview published on its website on Thursday.
“You can only exit gradually because the degree of entanglement is so great that only a very cleverly calibrated exit is possible without raising the risk of big distortions,” he said. “I would much prefer it if interest rates were not so low,” he added.
Reporting by Gernot Heller; Writing by Madeline Chambers; Editing by Joseph Nasr