Central Banks
Yield-Curve Control at ECB a Possibility to Cap Surge, ING Says
- Its chief eurozone economist says investments may boost yields
- That could force ECB into action to ensure policy transmission
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The European Central Bank may resort to yield-curve control if a surge in government borrowing costs damps the impact of interest-rate cuts, according to ING.
Carsten Brzeski, the Dutch bank’s chief euro-zone economist, said there’s a possibility of central banks trying to cap yields, an experimental tool most notably deployed in Japan and Australia previously.