Economics
ECB Officials Agree to Counter Investor Rate-Cut Skepticism
- Lagarde emphasized ‘all’ ECB tools are viable if needed
- Market pricing suggests rate cut through March 2022 unlikely
This article is for subscribers only.
European Central Bank policy makers are uncomfortable that investors appear to be largely ruling out more interest-rate cuts, and have agreed to stress that such stimulus remains a viable option, according to officials.
The Governing Council last week discussed how market pricing foresees little chance of a reduction further below zero, and concurred on the need to highlight that possibility, the officials said, asking not to be identified because the deliberations were private.