Börsen-Zeitung asked economists for their assessments ahead of the upcoming monetary policy meeting of the European Central Bank (ECB). "Regardless of whether inflation is just below or above [two percent], the ECB must adjust the key interest rate upward," Volker Wieland said in the survey.
He said the ECB should explain what neutral interest rate level it is heading for and set out on its journey this year. The Federal Reserve, he said, is much more transparent in this regard. "ECB policy is automatically becoming more expansionary at the moment because the rise in inflation expectations is driving real interest rates even deeper into negative territory," Wieland warned.
Börsen-Zeitung: "Top-Ökonomen für raschere EZB-Zinswende"
Börsen-Zeitung: "Die EZB steht vor einer wenig beneidenswerten Aufgabe" (€)