ECB should not pre-commit to specific rate path in current uncertainty, De Cos says

The European Central Bank should not pre-commit to any specific interest rate path due to the current economic and geopolitical uncertainty, ECB policymaker Pablo Hernandez de Cos said on Tuesday.

“We will (…) have to fine-tune the normalisation process based on the incoming data,” De Cos said in a speech in Barcelona, adding that for the ECB to adopt a gradual monetary normalisation approach it was essential that inflation expectations remain anchored at the 2% target.

Euro zone inflation rose more than expected to yet another record high in May, challenging the ECB’s view that gradual interest rate increases from July will be enough to tame stubbornly high price growth.
Source: Reuters (Reporting by Jesús Aguado; editing by Emma Pinedo)