ECB's Coeure sees rates steady through summer 2019: Tagesspiegel
Reuters
Published Sep 30, 2018 06:52AM ET
ECB's Coeure sees rates steady through summer 2019: Tagesspiegel
BERLIN (Reuters) - The European Central Bank (ECB) expects interest rates to stay at their current level through the summer of next year and the scaling back of economic stimulus measures to be gradual, board member Benoit Coeure told Germany's Taggespiegel.
The comments are in line with the bank's previous assertion that it is comfortable with market expectations for an interest rate rise in the final quarter of 2019.
"We expect interest rates to stay at the current level at least through the summer of 2019. But we have already started to reduce our net asset purchases and anticipate them ending after the end of December," Coeure told the newspaper in an interview released on Sunday ahead of publication on Monday.
With inflation picking up, the ECB has been curbing stimulus for months and plans to end its 2.6 trillion euro bond purchase scheme in December.
Coeure said that ample monetary stimulus would still be needed to achieve the bank's euro zone inflation target of below, but close to, 2 percent.
"Price pressures are gradually picking up. But this doesn’t happen in one day," Coeure said.
Asked about Brexit, Coeure said that the ECB has to be prepared for all eventualities.
"Likewise, the financial sector should prepare for the worst: a no-deal Brexit," he said, adding that he hopes the EU and Britain can reach a deal that allows an orderly Brexit.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.