The euro zone’s situation would be better if interest rates were at an intermediate level

The Federal Reserve has raised its key interest rates to an intermediate level, while the ECB has kept interest rates at zero or negative. We believe the Federal Reserve’s choice is preferable to that of the ECB, and that the euro zone’s situation would be better if its interest rates were at an intermediate level: Interest rates would still be lower than the growth rate and borrower solvency would be preserved; Banks’ situation would improve, and better bank profitability would boost credit supply; The drawbacks of zero interest rates (no ability to use monetary policy to respond, massive taxation of savers, appearance of "zombie companies") would be avoided .