ECB Would Enter Restrictive Territory if it Hikes Again

Dow Jones
昨天

1313 GMT - After raising its key rate to 2.5%, hiking rates further would mean that the European Central Bank sees restrictive monetary policy as necessary, ING's Carsten Brzeski says in a note. The economy has proved resilient this year, but that is different from an overheating economy that needs restrictive policy, he says. "We still find it hard to see--amid public finance woes and surging bond yields--that the ECB would really be willing to add more fuel to the fire," Brzeski notes. The bank isn't likely to be willing to risk a recession to tackle what is still a supply-side shock, but the ECB has made policy mistakes before, he says.

 

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