© Reuters.
BNP Paribas (OTC:) SA CEO Jean-Laurent Bonnafe has urged the European Central Bank (ECB) to swiftly ease monetary policy in order to protect the euro-area economy, according to a recent interview with La Tribune Dimanche. Bonnafe emphasized the need for reduced interest rates, citing Europe’s greater economic impact compared to the U.S., particularly in Germany.
The call for easing comes after an unprecedented period of tightening by the ECB, which included 10 rate increases. Despite this, Christine Lagarde, head of the ECB, recently maintained steady interest rates. Thierry Laborde, BNP Paribas’ COO, forecasted stable rates for next year on Radio Classique. This is amidst economists’ predictions of a potential economic slowdown or shrink in the euro-region in Q3 due to continuous rate hikes. The GDP data is expected soon.
Bonnafe also highlighted the high cost and duration of transitioning to low-carbon energy within the bloc, which would require substantial investment. In response to these challenges, Paris-based lender BNP Paribas aims to expedite its green initiatives by boosting its share of low-carbon energy production loans to 80%, four years ahead of schedule by 2026.
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