ECB’s Zero Interest-Rate Policy Leads to Slower Growth, Holzmann Says

(Bloomberg) --

European Central Bank Governing Council member Robert Holzmann said he has a “critical stance” toward the institution’s current zero interest-rate policy.

“This loose monetary policy leads to less growth and lower productivity,” Holzmann, who heads the Austrian central bank, told Kronen Zeitung in an interview published on Saturday. He also voiced criticism of the ECB’s bond purchases, according to the newspaper.

Last month, ECB President Mario Draghi insisted on a new round of quantitative easing against opposition from governors whose countries make more than half the euro zone’s population. Holzmann was among the dissenters.

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ECB’s Zero Interest-Rate Policy Leads to Slower Growth, Holzmann Says