FRANKFURT, June 23 Low interest rates are causing some markets, such as real estate, to overheat in some countries, European Central Bank Vice President Vitor Constancio warned on Monday.
Constancio said historical interest rates around the world to support modest recoveries and "too low rates of inflation" were driving investors to search for higher returns, which could lead to financial imbalances.
"The ECB and the IMF (International Monetary Fund) in their financial stability analysis confirm that specific asset segments, among which (are) real estate, point to some overheating in some countries," Constancio said in a speech at an ECB research conference.
He said that in the last quarter alone, Belgium, the Netherlands, Slovenia and Estonia in the euro zone had activated macro-prudential policies - capital-related measures aimed at managing systemic risk in the financial system.
(Reporting by Eva Taylor)