John Cryan says bubbles are emerging in parts of market ahead of European Central Bank monetary policy meetingIt is time to start raising interest rates, the chief executive of Deutsche Bank has said, warning that bubbles are emerging in parts of the market. The ECB is pumping €60bn a month into the markets in an attempt to stimulate growth, making a total of €2tn, and has operated a negative interest rate since 2014. “It would help us greatly if Europe were to bring negative rates to an end and a single European financial market were finally to be created,” said Cryan. A tightening of monetary policy would help the EU’s banks at a time when US banks are starting to benefit from rising profits. Cryan blamed the low interest rate environment for a fall in profits at Europe’s banks.

Source: The Guardian September 06, 2017 19:07 UTC