German Finance Minister Wolfgang Schäuble has urged theECB, the and the U.S.Federal Reserve to work together to exit ultra-low interest rate policies, The Wall Street Journal reported April 9.
Speaking in Kronberg, Germany, Schäuble said he thinksexcessive liquidity has become "more of a cause than a solution to theproblem."
"I just said to [U.S. Treasury Secretary] Jack Lew thatyou should encourage the Federal Reserve and we should encourage the EuropeanCentral Bank and the Bank of England in a concerted action, to carefully butslowly exit," he said.
In March, the ECB cut all three of its major interestrates, expanded its quantitative easing program and launched a fresh series oftargeted longer-term refinancing operations but that concerns over the effectof negative interest rates on banks' profits could limit further rates cuts.
In an April 9 speech in Italy, Yves Mersch, an executiveboard member of the ECB, warned that central banks' measures to induce growthmay eventually show diminishing returns, Bloomberg News reported the same day.