Central Banks
ECB Broadly Comfortable With Market’s Rate-Cut Bets, Wunsch Says
- Taking borrowing costs to neutral will be ‘trial and error’
- Belgian central-bank chief speaks in interview in Brussels
The European Central Bank headquarters in Frankfurt, Germany.
Photographer: Alex Kraus/BloombergInvestor bets on how much lower the European Central Bank’s interest rates will have to fall are relatively consistent with policymakers’ own assessments, according to Governing Council member Pierre Wunsch.
Asked about wagers on four to five more quarter-point cuts from the current 3% level, the Belgian official said “we’re broadly comfortable.” He cautioned that this pricing is likely to change again as borrowing costs move closer to a level that neither constrains nor stimulates economic growth — also referred to as neutral.