That’s because interest rates in the euro area are likely to remain very low for some time to come – the low rate of inflation, the modest economic outlook and the ECB’s forward guidance suggest as much. The picture is a different one across the pond.
For all extents and purposes, the United States already began edging towards the monetary policy exit back in May 2013. That was when the US Federal Reserve announced its plans to “taper” its bond purchase programme. So a possible interest rate hike would represent a return to conventional monetary policy terrain.