ECB Updates Estimate of Neutral Rate
ECB’s estimates of neutral interest rates leave plenty of room for further rate cuts
For those hoping for real clarity about what’s next for the ECB, the long-awaited working paper will have been a disappointment. In short, the paper concludes that the neutral interest rate ranges between 1.75% and 3% when using the most recent data between 1.75% and 2.25%.
ECB still has several rate cuts to go before hitting 'neutral' level, paper finds
The European Central Bank may still be several interest rate cuts away from the level where it stops holding back economic growth, it said in a paper on Friday, though it downplayed the significance of the latest estimate.
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I see the neutral rate a fair bit lower than where we are today. The Fed are on hold now, but over next 12-18 months, the ...
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