World News

ECB can't fight climate change, must deal with effect: ECB's Coeure

FILE PHOTO: Benoit Coeure, board member of the European Central Bank (ECB), is photographed during an interview with Reuters journalists at the ECB headquarters in Frankfurt, Germany, May 17, 2017. Picture taken May 17, 2017. REUTERS/Kai Pfaffenbach/File Photo

FRANKFURT (Reuters) - The European Central Bank should not be at the forefront of fighting climate change but must deal with its effects, such as lower demand for some cars, ECB board member Benoit Coeure said on Thursday.

“Central banks cannot be at the forefront in fighting climate change,” Coeure said in Paris. “This is and should remain a political task. But they can help within their mandates.”

He added monetary policy can fight weakness in demand but it was not the right tool to address changing consumer preferences, such as a switch away from fossil fuel-driven cars.

Reporting by Balazs Koranyi; Editing by Francesco Canepa