On May 16th, Lane, Chief Economist of the European Central Bank, stated that the ECB will update its monetary policy related strategies in the second half of 2025. The central bank expects to include an assessment of the uncertainty surrounding US tariffs in June. The release of interest rate path expectations will create unexpected expectations. Releasing a conditional interest rate path would ’embarrass the European Central Bank’. It is expected to set standards to guide the European Central Bank’s response function in response to shocks. This response function guide should be updated regularly. The information revealed through interest rate determination is an ‘effective function’.
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