The Peterson Institute for International Economics’ Kirkgaard says an interest rate cut from the ECB this week is very unlikely:
- There is an “extremely high” threshold for additional rate cuts by the ECB
- “Zero growth … is not going to be enough”
If the ECB does act, Kirkgaard said, it would be with “non-standard measures, including further ECB collateral changes.” However, “We shouldn’t expect very large measures,” if they do indeed act.
PIIE: Threshold Of More ECB Rate Cuts To Be Extremely High
–
