Central Banks
ECB Turns Up Temperature in Rate Debate as Lagarde Urges Caution
- Hawks are worried that hasty action could force policy U-turn
- Dovish officials renew push for earlier cut as soon as March
Christine Lagarde
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The debate around when the European Central Bank should begin lowering interest rates is hotting up — exposing strains within the Governing Council that could worsen further as monetary easing unfolds.
While almost all officials endorse cutting this year, they differ over when to fire the starting gun. A majority appears to favor June or later, though several are leaning toward April and one refuses to rule out March.