ECB's Passive Policy Easing: A New Challenge
Update: 2025-12-09
Description
ECB officials, known as hawks, grapple with passive policy easing - a subtle yet significant issue where economic conditions might feel looser even with unchanged interest rates. Isabel Schnabel suggests a potential rate hike to prevent unwanted inflation, as the global economys shifts could raise the neutral interest rate, potentially leading to passive easing.
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