The European Central Bank should keep its powder dry on interest rates for now, policymaker Martin Kocher said in an interview published on Monday when asked if the ECB would act given that inflation is forecast to be just below the 2% target next year.
“I believe slight deviations above or below the 2% target should not yet trigger any need to act now, because we cannot and do not want to engage in that kind of micro-management of monetary policy,” he told Austrian newspaper Kurier. “We should keep enough powder dry so we can react quickly if necessary.”