Central Banks
ECB Should Hike by 75 Basis Points at Next Meetings, Vasle Says
- Doing so would bring interest rates close to ‘neutral’ level
- Slovenian official says QT is likely to follow next year
This article is for subscribers only.
The European Central Bank should lift borrowing costs by 75 basis points at its next two meetings in October and December, according to Governing Council member Bostjan Vasle.
Doing so would bring euro-area interest rates “close to what we estimate” is a level that’s neither accommodative nor restrictive, the Slovenian central bank governor said Wednesday in an interview. It would also open the debate for further steps like shrinking the ECB’s balance sheet, he said.