Germany's Schaeuble urges gradual reversal of record-low interest rates

BERLIN (Reuters) - German Finance Minister Wolfgang Schaeuble said on Tuesday central banks should start finding ways to gradually raise their record-low interest rates, though he refrained from naming the European Central Bank whose monetary policy he has often criticized.

"I have repeatedly said that the zero rates and negative rates, which we have, carry an enormous political risk," Schaeuble told an event hosted by business newspaper Handelsblatt. "Therefore I would much prefer that the central banks gradually try to find a way out of the unusual monetary policy, gently and cautiously."

Schaeuble also said that he expected an agreement with Greece on reforms in two weeks, which would unlock new loans. He ruled out debt reduction for Athens.

(Reporting by Gernot Heller; Writing by Joseph Nasr; Editing by Mark Trevelyan)

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