ECB’s Draghi tells G20 rates to stay low until growth convincingly picks up

ECB President Draghi addresses the European Parliament's Economic and Monetary Affairs Committee in Brussels

WASHINGTON (Reuters) – European Central Bank interest rates will stay low until euro zone economic growth picks up in a convincing way, ECB head Mario Draghi told finance ministers and central bank governors from the world’s 20 biggest economies (G20) at on Thursday, a G20 source said.

Draghi and other world financial leaders were attending a dinner in Washington on Thursday evening to discuss the global economy.

In an apparent reference to a story on Bloomberg from Oct 4 on a consensus building in the ECB on tapering quantitative easing, Draghi told the G20 dinner it would be a mistake to speculate about tightening of monetary policy, the G20 source said.

Draghi also sought to reassure the G20 that no new banking crisis was brewing in Europe and that there was no problem with solvency in the European banking sector.

He noted that banks’ capital adequacy ratios were more than satisfactory, but that bank profitability was a problem, the G20 official said.

(Reporting By Jan Strupczewski)