ECB's Stark Warns On Low Interest Rates, Euro Bonds

(RTTNews) - European Central Bank Executive Board member Juergen Stark has warned against lower interest rates and common euro bonds, reports said Friday citing the policymaker's interview with the
German daily Handelsblatt.

Asked if the central bank is intensifying the economic crisis with loose monetary policy, he pointed out that such a policy promotes excessive risk taking and results in wrong investments, which would hurt the growth potential of the economy. "Keeping interest rates too low for too long carries risks," Stark was quoted as saying.

The policymaker also cautioned that the idea of common euro bonds was not a solution to Eurozone debt crisis and could lead to false incentives.

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