A top European Central Bank official has defended the central bank's policies, stressing that the current low interest policy also benefits savers over the longer term. This comes amid accusations that the central bank's low interest rate policy is hurting returns on savings accounts and pensions.

Speaking to a German audience, ECB executive board member Benoît Coeuré said the low rate policy benefits employees, taxpayers and borrowers, and will help normalize economic conditions and ensure higher returns on savings in the future. He also said in a newspaper column that dropping the ECB's inflation target in the face of very low inflation will create instability, and such a move is not an option.