Small font size A Larger text size A Largest text size A

ECB's Kocher sees rate move if inflation outlook does not improve

BY Reuters | ECONOMIC | 01:25 AM EDT

ZURICH, May 11 (Reuters) - The European Central Bank will need to adjust interest rates soon if the inflationary outlook does not significantly improve, ECB governing council member Martin Kocher was quoted as saying on Monday.

Speaking to Switzerland's Neue Zuercher Zeitung newspaper, Kocher said it did not make sense to anticipate the ECB's next rate move weeks before its next monetary policy decision.

"However, if the situation does not improve significantly, there will be no avoiding an interest rate move in the near future," Kocher told the newspaper.

(Reporting by Dave Graham Editing by Ludwig Burger)

More Fixed Income News

Sector Update: Financial Stocks Fall Monday BY MT Newswires |TREASURY 04:03 PM EDT
US Equity Indexes Mixed, Crude Oil Rises as Iran Peace Plan Stalls BY MT Newswires |TREASURY 04:00 PM EDT
Sector Update: Financial BY MT Newswires |TREASURY 03:52 PM EDT
Inflation Set To Climb Back To 3.7%: Warsh Walks Into A Fed Trap BY Benzinga |ECONOMIC 03:39 PM EDT

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article