ECB rates to diverge from UK and US

Eurozone interest rates will diverge from those in the US and Britain for a number of years, according to European Central Bank (ECB) executive board member, Benoit Coeure.

Speaking after the ECB last week cut rates to record lows, Mr Coeure said they would remain around that level for a long time, whereas central banks in the US and Britain would, at some point, raise rates.

“Clearly, what we wanted to indicate on Thursday is the fact that monetary conditions will diverge between the eurozone, on one hand, and the United States and the United Kingdom on the other for a long period, which will be several years,” he said.