FRANKFURT, June 27 (Reuters) – The European Central Bank faces an “easy last kilometre” in its fight against inflation and can continue to slowly cut interest rates, two researchers are set to tell the ECB’s top brass next week.
The paper by Giorgio Primiceri and Domenico Giannone will be the first to be presented at the ECB’s annual get-together in a hilltop resort near Sintra, Portugal, on Tuesday.
The researchers used a model that decomposes inflation into supply, demand and the effect of monetary policy on the latter to conclude that inflation was heading back to the ECB’s 2% target barring new shocks.
Source: REUTER
