Rising services share behind slower euro zone inflation pick up - Coeure

FILE PHOTO - Benoit Coeure, board member of the European Central Bank (ECB), is photographed during an interview with Reuters journalists at the ECB headquarters in Frankfurt, Germany, May 17, 2017. Picture taken May 17, 2017. REUTERS/Kai Pfaffenbach - Copyright KAI PFAFFENBACH(Reuters)

By Reuters

Published on 16/05/2019 - 23:34•Updated 25/04/2024 - 05:45

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FRANKFURT (Reuters) - The growing share of the services sector in the euro zone economy is the culprit behind the slower transmission of monetary policy but the impact of ultra-low borrowing costs has not declined, ECB board member Benoit Coeure said on Thursday.

"Services deepening implies that monetary policy takes more time to be transmitted to inflation, but its effectiveness has not diminished," Coeure said in Geneva. "The effects of monetary policy take longer to pass through the economy but they have not become less powerful."