The European Central Bank’s negative rates and asset purchases may contribute to higher risk-taking, high asset-price inflation and inequality, said Yves Mersch on January 27.

In a speech, the ECB’s executive board member stressed ultra-loose policies are contributing to higher owner-occupied housing costs. Such costs are not included in the institution’s measure of inflation, which could hamper efforts to explain the need for negative rates to the public; many people perceive inflation as way