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One Should Not Take Every Word of Central Bank Officials Literally
In recent weeks, "hawkish" expectations regarding
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In recent weeks, "hawkish" expectations regarding the European Central Bank's monetary policy for 2026 have been building in the market. Where did these expectations come from, considering the ECB recently concluded its rate-cutting cycle? In early December, one of the governors, Isabel Schnabel, stated that she did not rule out a rate hike next year. As soon as the market heard such a statement, it began to anticipate a tightening of monetary policy. Is this approach valid?In my opinion, no.
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Chin Zhao,
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