Mario Draghi Is Watching His ECB Rate Hike Slip Over the Horizon
Comment of the Day

January 24 2019

Commentary by Eoin Treacy

Mario Draghi Is Watching His ECB Rate Hike Slip Over the Horizon

This article by Brian Swint and Carolynn Look for Bloomberg may be of interest to subscribers. Here is a section:

With the economy threatened by trade tensions, European politics and temporary factors such as a slump in German car production, “we’ll probably have to wait until the June meeting before the dust has settled,” said Carsten Brzeski, an economist at ING. “However, it will require a very benign outcome on all these risk factors to see Draghi hiking rates before he leaves office.”

UBS Group AG President Axel Weber, a former ECB policy maker and Bundesbank president, said at the World Economic Forum in Davos this week that the ECB has already missed its chance to normalize policy in this cycle.

Eoin Treacy's view

Mario Draghi is unlikely to raise rates during his tenure at the ECB and his successors are going to have equally grim prospects of returning to normal monetary policy

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