The European Central Bank should clarify the pace at which it intends to raise interest rates when the time for further policy tightening comes, ECB board member Benoit Coeure said on Monday.
Steering market expectations has been a key challenge for central banks across the world since the start of the financial crisis in 2008 as policymakers battled a lending freeze and fears of an unprecedented depression.
After years of aggressive stimulus, the ECB has been preparing investors for the end of its 2.6 trillion-euro ($3.03 trillion) bond-buying program in December and for the first interest rate increase since 2011 sometime after the summer of next year.
Coeure made the case for clarifying the path of subsequent rate increases while making it conditional on how the economy develops. "Should economic conditions warrant, there might be a case for the Governing Council to go beyond the timing to lift-off (rates) in further clarifying the pace.
---Reuters, Berlin
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