The IW Monetary Outlook analyzes and classifies the anticipated monetary policy of the central banks.
The Eurozone inflation rate remains still low. Therefore, the European Central Bank (ECB) is likely to increase its large-scale asset purchase program on Thursday. Moreover, it is expected that the ECB will cut interest rates even further into negative territory. But negative interest rates will worsen the situation, according to a new study of the Cologne Institute for Economic Research (IW).
Investors eagerly await the Federal Reserve Bank’s and the European Central Bank’s forthcoming interest rate decisions. When will both central banks start hiking their policy interest rates? A study from the Cologne Institute for Economic Research (IW) shows that the Fed will start its lift-off this year, while the ECB will stick to its accommodative monetary policy further on.
Senior Economist for Monetary Policy and the Economics of Financial Markets
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