Central Banks
ECB Officials to Lock Horns Over How Much Cuts Can Boost Economy
- Fierce discussions on whether weakness cyclical or structural
- Policymakers poised to deliver fourth rate reduction this week
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European Central Bank officials agree that lower interest rates are needed to buoy the region’s shaky economy. How much they can actually help, though, is hotly contested.
Some policymakers urge rapid cuts to encourage consumers to spend and businesses to invest. Others are more cautious, deeming challenges including high energy costs and a dearth of skilled workers to be beyond the remit of monetary policy.