Jack Ewing’s headline: “Lowering Forecast, European Central Bank Keeps Rate Steady.”
One grows tired of writing this every few months, but this is totally nuts. If current policy was appropriate to the old forecast, then the new forecast must call for a different policy. Right? Or is the ECB’s view that it’s been running dangerously inflationary monetary policy for years and only now under the new depressed forecasts is it appropriate? That’s just silly. But they keep doing this. Revising their forecasts downward, while not changing any policies. It’s egregious. They start with inappropriate policy and then they get worse and worse.
