BERLIN (Reuters) – German Finance Minister Olaf Scholz mentioned on Saturday that he anticipated rates of interest to stay very low for “the following few years”, including that firms ought to seize the chance of near-zero borrowing prices to spice up non-public sector funding.
The European Central Financial institution has already signaled much more financial stimulus for the euro zone financial system, hoping to arrest a downward spiral that might result in an financial recession.
Requested by a member of the general public throughout a authorities open day about his view on the outlook for rates of interest, Scholz mentioned: “I additionally consider that the time of upper rates of interest can come up every so often, however that won’t occur within the subsequent few years due to central financial institution insurance policies.”
Scholz mentioned that central banks around the globe had been at present pursuing a free financial coverage, together with the ECB.
“What I would want for is extra investments by the non-public sector,” Scholz mentioned, pointing to a a lot greater willingness of firms and traders in the US to place contemporary cash into new tasks or enterprise concepts.
“My want is that we additionally obtain such a cultural change right here,” Scholz mentioned.
Requested by a youthful customer throughout a panel dialogue within the finance ministry if he had a superb funding tip in instances of zero rates of interest, Scholz laughed and mentioned he was in all probability not even allowed by regulation to provide such recommendation.
However he added: “Simply do not do it my method. I merely put it in my financial savings account.”
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