🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Catching asset price bubbles key-ECB's Tumpel-Gugerell

Published 06/15/2009, 01:00 PM
Updated 06/15/2009, 01:09 PM

VIENNA, June 15 (Reuters) - The financial crisis has shown that policymakers should pay more attention to asset prices to avoid severe economic consequences, European Central Bank Executive Board Member Gertrude Tumpel-Gugerell said on Monday. "Monetary policy-makers should try to mitigate the risk of the build-up of financial bubbles by being aware of the effects their policy decisions can have on the financial system," she said in remarks prepared for a speech in Vienna.

"Therefore, one could argue that asset prices should play a greater role in monetary policy considerations," she said.

She added that the ECB has acted in a decisive manner since the start of the crisis and that its rate cuts and liquidity measures have had a "significant" impact on money market interest rates.

She also said inflationary pressures have declined "in line with the substantial weakening of global demand and economic activity." (Reporting by Sylvia Westall; Editing by Toby Chopra)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.