BERLIN — The European Central Bank (ECB) was aware of the growing costs to the financial sector of its ultra-loose monetary policy and would rather not have to keep negative interest rates for too long, ECB President Mario Draghi said on Tuesday. Speaking in Berlin, Germany, Draghi defended the ECB’s policy of aggressive bond buying and negative rates from accusations that it has led to growing inequality and a shift of financial income from stronger to weaker economies. But he also acknowledged complaints by banks, particularly in Germany, that low rates are eating into their profits. "We would certainly prefer not to have to keep interest rates at such low levels for an excessively long time, since the unwelcome side-effects may accumulate over time," Draghi told an event in Berlin. The ECB is studying options to ensure its €80bn a month money printing programme can run at least until March as eligible assets to buy in Germany run scarce. Draghi’s comments were likely to further l...
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