The European Central Bank is not finished lowering interest rates, but the timing and size of future policy easing remains uncertain, Dutch newspaper Het Financieele Dagblad quoted ECB board member Frank Elderson as saying on Friday.
“If we lower interest rates too quickly, bringing down services inflation adequately could be complicated,” Elderson said. “On the other hand, if we keep interest rates too high over a long period of time then we risk not achieving our targets.”
“The market doesn’t think we’re done easing now because we’re at 3% and I don’t think we’re done easing either,” Elderson said. “Setting interest rates is ultimately a question of how fast and how much.”
Source: Reuters
