ECB Faces Hard Job Judging When to Stop Hiking, Lombardelli Says
- OECD chief economist speaks to Bloomberg Television in France
- She says structural shifts make it harder to gauge rate impact
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The European Central Bank faces a tough job deciding when to stop raising interest rates because it’s hard to gauge the impact of tightening, the chief economist of the Organization for Economic Cooperation and Development said.
Clare Lombardelli told Bloomberg Television that structural changes since the last cycle of rising borrowing costs, such as a higher proportion of fixed-rate loans, are making it difficult to assess effects feeding through to the real economy. That’s blurring the picture for central bankers.