Not to mention my bent is inflation and growth are, at best, very weak functions of interest rates, and they work mostly through the cost side, but that’s another story – see ‘MANDATORY READINGS‘.

ECB’s Weber Says Interest Rates ‘Accommodative’, Dismisses Cut Bets

by John Fraher and Andreas Scholz

(Bloomberg) European Central Bank council member Axel Weber said interest rates in the euro region are still “accommodative” and investors’ expectations of reductions later this year may be “wishful thinking.”

“We have a positive economic outlook and as long as that doesn’t change I would say that rates are still on the accommodative side and in no way restrictive,” Weber said in an interview with Bloomberg Television in Davos, Switzerland, at the World Economic Forum’s annual meeting.

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