PARIS, April 3 Governments and other economic
actors need to get ready for higher borrowing costs after years
of record lows, ECB Executive Board member Benoit Coeure said on
"It's obvious that the financial sector, and other economic
actors and especially governments must prepare (for higher
interest rates)," Coeure told a finance conference in Paris.
"I hope that euro zone governments know that interest rates
will not stay at current levels," Coeure added.
Coeure also said that negative interest rates that the ECB
charges banks to deposit with it, had been effective in terms of
monetary policy, but such rates should not stay in place too
long due to the risk it could weaken those banks.
(Reporting by Leigh Thomas and Yann Le Guernigou; Editing by