ECB Rate Hike in 2019 Not an Absurd Expectation, Weidmann Says
- Bundesbank president sees signs balance of risks has improved
- Central bank raises provisions to buffer interest-rate risk
Jens Weidmann Says 2019 Rate Expectations Are Not Absurd
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Investor expectations for an interest-rate increase by the European Central Bank in 2019 aren’t totally unjustified as downside risks to the economic outlook recede, according to Bundesbank President Jens Weidmann.
“The balance of risk might be more favorable today than it was before,” Weidmann said in an interview with Bloomberg TV. Anticipations of a change in borrowing costs in two years “don’t sound absurd” and are “in the possibilities that I see,” he said in Frankfurt after presenting the central bank’s annual report.