Finance
ECB's Elderson: we are not yet done easing policy
Published by Global Banking and Finance Review
Posted on January 17, 2025
1 min readLast updated: January 27, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on January 17, 2025
1 min readLast updated: January 27, 2026
ECB's Frank Elderson suggests more interest rate cuts are possible, but timing and size remain uncertain.
FRANKFURT (Reuters) - The European Central Bank is not yet done lowering interest rates, but the timing and size of any future policy easing is not yet certain, Dutch newspaper Het Financieele Dagblad quoted ECB board member Frank Elderson as saying on Friday.
"If we lower the interest rate too quickly, dialling down services inflation sufficiently could become complicated," Elderson said. "On the other hand, if we keep interest rates too high for too long then we risk undershooting our target."
"The markets don’t think we’ve finished easing now that we’re at 3% and I don’t think we have, either," Elderson said. "Setting interest rates is ultimately a question of how fast and how much."
(Reporting by Balazs Koranyi; Editing by Hugh Lawson)
The article discusses the European Central Bank's potential future interest rate cuts and policy easing.
Elderson mentioned that the ECB is not done with lowering interest rates, but the timing and size are uncertain.
The ECB is cautious because lowering rates too quickly could complicate inflation control, while keeping them high risks missing targets.
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