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)