ECB's Mersch (Luxembourg): we are aware that non-standard policy measures have side effects - press
- positive impact from low rates still outweighs the drawbacks
- low rates put pressure on banks' profitability
- the Euro Area recovery is underway
- have to question if a bank can't whether headwinds over a few years, if that bank have a sufficiently robust model
- if rates are too low for too long, could challenge viability of return guarantee on bank business models
- inflation rebound is taking longer than hoped- cutting rates further would come with increasing risks