ECB mistake.
Position | OFF THE NEWS |
It is universally agreed that the European Central Bank made a mistake with its recent "forward guidance" statement involving the sequence of coming policy change. The statement incorrectly suggested the ECB might taper first and then change the deposit rate. The truth was the other way around. The consensus initially was to move first on the deposit rate and then to taper. However, the ECB Council is said to be split on the question of whether to formally admit to financial markets that policymakers made a mistake. Therefore, the likelihood is that...
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