BERLIN, May 28 (Reuters) - Germany’s Finance Minister Wolfgang Schaeuble expects currently record-low interest rates to rise in the medium term, he said on Wednesday, adding that the current level reflected imbalances on financial markets.
“We always expect interest rates to rise in the medium term. The current interest rate level also reflects in part the imbalances on the financial markets,” Schaeuble told reporters.
European Central Bank chief Mario Draghi said after the ECB’s May meeting that the Governing Council was “comfortable with acting next time” - its June 5 policy meeting - but wanted to see updated economic projections from the bank’s staff first.
Reuters reported earlier this month that the ECB is preparing a package of policy options for its June meeting. It includes cuts in all its interest rates as well as targeted measures aimed at boosting lending to smaller firms. (Reporting by Matthias Sobolewski, writing by Annika Breidthardt)