European Central Bank Governing Council member Ewald Nowotny said on Wednesday that there are limits to what monetary policy can do to boost credit development.
Speaking at a press conference held on the occasion of release of the latest Financial Stability Report of the Austrian central bank, Nowotny said, "The possibilities of monetary policy are more or less limited."
The policymaker, who heads the Austrian central bank, pointed out that weakness was on the demand side.
Financial markets in the euro area remain highly fragmented, despite the positive effects of extra liquidity provision for banks and government action, the Austrian central bank said in its report.
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