Eurozone May Not See Positive Interest for 5 More Years

Benoit Coeure of the International Payments Bank stated that governments in Europe must find new ways to support growth. According to Coeure, the Euro Area may not see positive interest for 5 more years. Benoit Coeure, a former member of the European Central Bank (ECB) Executive Board, commented that the Eurozone will probably not see positive interest for another 5 years. Today, Benoit Coeure, head of the International Payments Bank's (BIS) innovation unit, said that the markets are not shrinking the balance sheet of the ECB and that negative interest rates will continue. Coeure noted that in Europe, governments may have to find new ways to support growth to get rid of the outbreak and return to normal earlier. "Increasing efficiency is really key," the head of the BIS Innovation Unit said in a statement to Bloomberg Television on Friday. Coeure, however, is also cautious about the pace of economic recovery, as the cases caused by the coronavirus outbreak have increased again in some areas and cannot be controlled in the American continent. "We're really still in the first phase of this crisis. We're not even at the beginning of the end, we're still at the beginning of the beginning," said Coeure, "now the challenge facing governments and central banks is to be able to manage uncertainty."