Central Banks
Turmoil in Paris and Berlin Overshadows ECB Policy in Frankfurt
- Thursday’s rate-cut meeting is first since governments fell
- Officials must now guess at fiscal impact, confidence fallout
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European Central Bank officials long used to navigating troubling times for the world now face a headache far closer to home: a leadership crisis at the heart of the euro zone itself.
Policymakers will set interest rates in Frankfurt this week for the first time since governments in Paris and Berlin both collapsed over budget talks for next year, with the ongoing turmoil largely obscuring their view of the two biggest economies in the currency region they manage.