ECB Governing Council member Pablo Hernandez de Cos said monetary policy will remain highly accommodative for a prolonged period of time.

But he also warned that “low-for-long interest rate environment could be encouraging excessive risk-taking by some financial intermediaries.” In particular, “asset valuations appear stretched in several advanced economies in markets such as equity, high-yield debt, and property markets.

Meanwhile, China’s Wuhan coronavirus “does keep balance of risks to downside.” Also, “Brexit entails significant risk of further fragmentation, as some companies may relocate to different financial centres.

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