Draghi Learns Lesson From Fed as ECB Stays Vague on Rate Outlook
- ECB officials seem keen to keep rate guidance open for now
- Lessons from BOE and Fed are that being specific can backfire
This article is for subscribers only.
Whatever Mario Draghi says about the European Central Bank’s bond-buying program this week, he’s not likely to provide much more clarity about his plans for interest rates.
The ECB president and his colleagues will discuss, and may announce, an end to asset purchases when they meet on Thursday. But they’ve so far brushed off questions on how they might change their guidance that borrowing costs will stay at current record lows until “well past” the end of net buying.