Central Banks
ECB May Drop ‘Restrictive’ Label on Stance as Soon as March
- Another rate cut then is highly likely, people familiar say
- Lagarde flagged staff report on neutral rate for Feb. 7
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The European Central Bank may stop describing its monetary policy stance as “restrictive” at its next decision in March, according to people familiar with the Governing Council’s debate.
With another quarter-point cut in borrowing costs highly likely then, bringing the deposit rate down to 2.5%, such a level may not fully deserve that label anymore, said the people, who asked not to be identified citing confidential discussions.