ECB member Yves Mersch warns on money rates scraping zero, saying they create "incentives for a...

|By:, SA News Editor

ECB member Yves Mersch warns on money rates scraping zero, saying they create "incentives for a misallocation of capital ... a high risk of creating new bubbles." He also takes issue with new regulations requiring banks to hold more government paper, saying they're being pushed by high debt countries like the U.S. and U.K.