NEW YORK, Sept 20 (Reuters) - The European Central Bank will need to start communicating next year the future path of interest rates beyond the initial hike, ECB chief economist Peter Praet said on Thursday.
“Today’s term structure of money market interest rates... embodies a very moderate pace of rate rises beyond the expected date of lift-off,” Praet told a conference in New York.
For these market prices to remain consistent with a gradual rise in inflation, the ECB’s communication on moves beyond the initial hike will gain importance, Praet argued.
The comments appear to echo comments from fellow board member Benoit Coeure, who argued this week that a more extensive forward rate guidance will be needed as the current wording only stipulates conditions needed for the initial move. (Reporting by Jonathan Spicer; Writing by Balazs Koranyi; Editing by Andrew Heavens)