MADRID, June 17 Global accommodative monetary
policy and investors' push for returns have become risky as
asset valuations soar to record highs, Bank of Spain Governor
Luis Linde said in a speech to the lower house of Parliament on
"Some valuations are at record highs in a context of a
search for returns by investors, which is playing a predominant
role over other considerations based in the fundamental value of
the assets," Linde said.
"This international monetary and financial market situation
has risks, in that it is susceptible to sharp changes due to
expectations of the removal of monetary stimulus."
On Spain's tax reform, Linde said proposals must improve
efficiency without putting at risk the government's measures to
balance the state's budget in the midst of an economic recovery.
"Pending fiscal consolidation efforts are still
significant...the culmination of the fiscal consolidation
process must continue to be a priority for Spain's economic
policy," Linde said.
(Reporting By Paul Day, Editing by Sonya Dowsett)