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Unpublished ECB inflation estimate raises prospect of earlier rate rise

The internal forecast is likely to intensify debate about how quickly major central banks will reverse the massive stimulus to counter the pandemic

©The Financial Times Limited 2020 Sep 17, 2021 / 12:36 PM IST
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Unpublished ECB inflation estimate raises prospect of earlier rate rise

Martin Arnold in Frankfurt The European Central Bank expects to hit its elusive 2 per cent inflation target by 2025, according to unpublished internal models that suggest it is on course to raise interest rates in just over two years. This would be at least a year earlier than most economists expect the ECB to raise its deposit rate from a record low of minus 0.5 per cent. Many analysts predict benchmark rates in the 19 countries that share the euro...

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