Get ready for higher interest rates, says ECB's Coeure

Benoit Coeure, executive board member of the European Central Bank (ECB), speaks during a conference in Brussels, Belgium March 28, 2017. REUTERS/Yves Herman

PARIS (Reuters) - Governments and other economic actors need to get ready for higher borrowing costs after years of record lows, ECB Executive Board member Benoit Coeure said on Monday.

“It’s obvious that the financial sector, and other economic actors and especially governments must prepare (for higher interest rates),” Coeure told a finance conference in Paris.

“I hope that euro zone governments know that interest rates will not stay at current levels,” Coeure added.

Coeure also said that negative interest rates that the ECB charges banks to deposit with it, had been effective in terms of monetary policy, but such rates should not stay in place too long due to the risk it could weaken those banks.

Reporting by Leigh Thomas and Yann Le Guernigou; Editing by Sudip Kar-Gupta