ECB's Issing on mortgage markets & monetary policy

In the speech 'Mortgage markets and monetary policy: a central banker's view' given on 23 November Otmar Issing of the ECB said the ECB will be able to avoid sharp rises in interest rates if markets have faith in its ability to keep inflation under control.

'If market participants are convinced that the ECB will deliver results in terms of a low and stable rate of inflation, inflationary expectations should remain subdued and interest rate fluctuations modest,' he said in the speech to the

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