ECB Economists Propose Two Rate Cuts to Achieve Neutral Levels

Reported about 6 hours ago

Economists at the European Central Bank suggest that the neutral interest rate is likely between 1.75% and 2.25%, indicating that two more quarter-point cuts could bring the current deposit rate of 2.75% down to neutral. While this research aids in monetary policy decisions, officials warn against over-reliance on the concept of neutrality as it represents a theoretical gauge that may not directly correlate with ongoing economic analysis.

Source: YAHOO

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