ECB’s Stark on the Wires

Written April 8, 2009 at 3:03 AM EST by  

ECB’s Stark: Lack of confidence in banking system is set to last longer than current economic downturn

- Germany continues to be hit by shrinking global demand
- Crisis will lead to a situation of higher financing costs, this will lead to downward pressures on GDP
- Confidence in global banks will take some time to be recovered
- Their remains the risk of a decline in the size of banking sector, banks still key for finance in EMU economy
- Monetary policy will continue to be targeted at the medium term outlook, European fiscal policy should take a similar view

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