Central Banks
Europe Faces Twin Blow If ECB and Fed Don’t Cut, Scicluna Warns
- Maltese official warns about undershooting 2% inflation goal
- ECB may need 50 bps moves if price gains surprise on downside
The European Central Bank.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The euro zone’s stuttering economy would face a twin blow should interest rates not be lowered both at home and in the US, according to European Central Bank Governing Council member Edward Scicluna.
“The assumption of a turnaround in the economy and a recovery in the second half is also based on the expectation that our monetary policy becomes less restrictive,” the dovish Maltese central-bank chief said Thursday in an interview.