The euro area is not overheating – ECB’s M.Draghi

At his speech on ‘Current developments in the euro area’ in Berlin, the President of the European Central Bank Mario Draghi said there are no signs of overheating in the euro bloc or in the German economy in particular.

Draghi now expects the ECB measures to develop their full impact, while he reiterated that other policies must contribute more decisively and remain a pre-condition for higher interest rates.

The President of the ECB argued that low interest rates for a long period could affect asset prices amidst search for yield by market participants, while he observed higher prices in residential real estate prices.