Central Banks
ECB Should Change Rates Plan for Thursday, Bini Smaghi Says
- Former board member cautions against repeat of 2011 mistake
- SVB contagion has already led to monetary tightening, he says
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The European Central Bank should either delay or pare back this week’s planned interest-rate increase to avoid a policy error reminiscent of 2011, former Executive Board member Lorenzo Bini Smaghi told Boersen-Zeitung.
The German newspaper published an interview with the Italian on Wednesday, the eve of a decision for which a half-point hike has been described by President Christine Lagarde as “very, very likely.”