Policy makers say ECB raising interest rates at the end of 2019 is too late
However, people close to discussions say the European Central Bank could make a move in September next year
Frankfurt — Some European Central Bank (ECB) policy makers are uneasy that investors aren’t betting on an interest-rate hike until December 2019, according to people familiar with the matter. A move in September or October next year is on the cards, the people said, asking not to be named because the discussions are confidential, even though any decision on rates will depend on the economic outlook at the time. Investors in the money markets are fully pricing in a 10 basis points hike to the deposit rate in December 2019. While the first rate move is still a year or more away, its timing matters because it will set the tone for the ECB’s exit from years of monetary stimulus. The September and October ECB governing council meetings are also current president Mario Draghi’s last opportunities to cap his tenure with an increase before his term runs out on October 31. The ECB announced last month that it will end net bond purchases this year, but also that interest rates will stay uncha...
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