- ECB should now focus more on inflation expectations than estimated neutral level in setting rates
- As inflation falls and rates near neutral, uncertainty becomes more of a problem
- Full transcript (may be gated)
Just some token remarks there by Panetta as he discusses more about the neutral rate, with the ECB supposedly gradually approaching that. As a reminder, policymakers themselves don’t have a firm conviction or view of what that level is for the time being.
This article was written by Justin Low at www.forexlive.com.
