— Reuters
FRANKFURT: The European Central Bank (ECB) must carefully calibrate the pace at which it cuts interest rates to balance risks that could leave inflation too high or too low, executive board member Frank Elderson tells Dutch newspaper Het Financieele Dagblad.
Setting policy at the current juncture is ultimately about how fast and how much to lower borrowing costs, Elderson said, according to an interview transcript published on the ECB’s website. He pointed to financial-market bets for further cuts and argued that he doesn’t believe either that the ECB is done. Yet, he urged caution in charting the path ahead.
