Bank of Greece Dep Gov Papaconstantinou: Currently Restrictive Monetary Policy Hampers Green Transition
20 January 2023
By David Barwick – FRANKFURT (Econostream) – Bank of Greece Deputy Governor Christina Papaconstantinou on Friday said that monetary policy, being restrictive, could hinder the transition to reliance on more sustainable energy.
In a speech at a book presentation in Athens, Papaconstantinou said that ‘the restrictive monetary policy stance today may make it difficult to finance the energy transition … because higher interest rates internationally contribute to the deterioration of financing conditions, making it more expensive to implement new investment projects related to green energy and sustainable activities.’
‘A combination of energy, fiscal and monetary policy action is therefore needed to restore the necessary conditions for green investments to thrive in the near future’, she continued.
Expensive and unreliable energy as well as concerns related to the geopolitical situation ‘have had a significant impact on the international macroeconomic environment and are weighing on the economic outlook’, she said.