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MNI INTERVIEW: Fed Risks To ECB Easing-German Experts Chair

(MNI) LONDON

The chair of the German Council of Economic Experts Monika Schnitzer speaks to MNI about the ECB and the German economy.

A slower-than-previously expected pace of monetary easing by the Federal Reserve would make it harder for the European Central Bank to cut interest rates, as it would run the risk of prompting a weaker euro, the chair of the German Council of Economic Experts Monika Schnitzer told MNI.

“If the Federal Reserve is slower in reducing rates, it will complicate matters for the ECB. In this case, the ECB might lower rates by 25 basis points or even more, but significant reductions would be challenging due to the potential impact on exchange rates, which could harm Germany,” Schnitzer said in an interview. (See MNI SOURCES: Fed, Geopolitics, Feed ECB Caution Over Cuts)

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A slower-than-previously expected pace of monetary easing by the Federal Reserve would make it harder for the European Central Bank to cut interest rates, as it would run the risk of prompting a weaker euro, the chair of the German Council of Economic Experts Monika Schnitzer told MNI.

“If the Federal Reserve is slower in reducing rates, it will complicate matters for the ECB. In this case, the ECB might lower rates by 25 basis points or even more, but significant reductions would be challenging due to the potential impact on exchange rates, which could harm Germany,” Schnitzer said in an interview. (See MNI SOURCES: Fed, Geopolitics, Feed ECB Caution Over Cuts)

Keep reading...Show less