The European Central Bank (ECB) could be heading away from loose monetary policy in a different manner than the U.S. Federal Reserve, Ewald Nowotny, the Austrian ECB council member, told Handelsblatt in an exclusive interview.
The American model was to finish bond purchases first, but the ECB might not follow that model exactly, said Mr. Nowotny, who also serves as the Austrian National Bank governor. All interest rates also wouldn’t have to be increased simultaneously nor to the same extent, he added.
“The ECB could also raise the deposit rate earlier than the prime rate,” Mr. Nowotny said. He warned against trying to compare the actions of the U.S. Federal Reserve to the ECB.
This article’s headline was corrected Friday morning to say the ECB could tighten monetary policy in a different way to the U.S. Federal Reserve, rather than that a rate hike could be on the way.