Some ECB Officials Are Said to Urge Clearer Interest-Rate Signal
- Rates to stay on hold until ‘well past’ end of bond-buying
- Some policy makers fear the vagueness stokes market volatility
This article is for subscribers only.
A group of European Central Bank policy makers is urging President Mario Draghi to give investors a clearer signal on how long the institution will keep interest rates unchanged, according to euro-area officials familiar with the matter.
Some Governing Council members at last week’s meeting argued that the ECB needs to be more specific than its current expectation that it will keep rates on hold until “well past” the end of asset purchases, the officials said. The concern is that the vagueness of that phrase could contribute to market volatility that weakens the economy, they said, asking not to be identified because the deliberations are confidential.