More volatility calls for greater agility – Schnabel
ECB official says new tools, including negative rates, may be needed in more disruptive age
Central banks need more “agile” tools to respond to the surprises of a more volatile era, Isabel Schnabel said on November 14.
Speaking in Washington DC, the European Central Bank (ECB) board member said that although policy rates “pass the agility test”, asset purchases and forward guidance do not.
Schnabel said that during the recent tightening cycle, raising rates quickly had proven to be effective by dampening demand and anchoring inflation expectations. This, she said, had dispelled any
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