Isabel Schnabel, a member of the Executive Board of the European Central Bank (ECB), made a statement in the last hour and said that gradual increases in real returns may not necessarily be a cause for concern.
Featured statements:
If an increase in nominal returns reflects an increase in inflation expectations it is a positive sign.
Changes in nominal rates need to be closely monitored.
An increase in long-term real rates in the early stages of the recovery may cause vital political support to be withdrawn too soon and too abruptly.
The moral hazard risks should not condemn the central bank to a course of inaction.
Is ECB may need to add support if yields hurt growth.
The ECB still has room to cut interest rates.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
