FRANKFURT (Reuters) – The European Central Bank is not yet done lowering interest rates, but the timing and size of any future policy easing is not yet certain, Dutch newspaper Het Financieele Dagblad quoted ECB board member Frank Elderson as saying on Friday.
“If we lower the interest rate too quickly, dialling down services inflation sufficiently could become complicated,” Elderson said. “On the other hand, if we keep interest rates too high for too long then we risk undershooting our target.”
“The markets don’t think we’ve finished easing now that we’re at 3% and I don’t think we have, either,” Elderson said. “Setting interest rates is ultimately a question of how fast and how much.”
(Reporting by Balazs Koranyi; Editing by Hugh Lawson)
Comments