Mubasher: An easy and flexible monetary policy offers Eurozone governments “a window of opportunity” to enact reforms needed for economic growth when interest rates begin to rise, European Central Bank (ECB) president Mario Draghi said in Frankfurt on Wednesday.
"ECB research finds no convincing evidence that high interest rates lead to more reforms," Draghi said at a press conference, indicating that “the opposite is more likely to be true: lower rates tend to promote reforms since they lead to a better macroeconomic environment."
"With monetary policy being accommodative, we now have a window of opportunity to take these measures," the ECB president added.
By 9:34 am GMT, EUR/USD fell 0.19% to $1.1744, while EUR-GBP slipped 0.04% to GBP 0.8917.
Earlier on Wednesday, Societe Generale said it was not expecting any surprises from Draghi, noting that the ECB president “will make no effort to obstruct the market dynamics and the bias to liquidate long positions.”
"The ECB has the single currency and rates where it wants them," the French bank added.
