Economist says ECB rate is overvalued

GERMANY - The chief economist of Deutsche Bank says he believes the ECB's key interest rate is at least a full percentage point too high.

"By the beginning of next year, the ECB's key rate is likely to be below 2%," Deutsche Bank's Norbert Walter said.

The ECB's key interest rate is 3.25%. He said that if fiscal policy doesn't move towards greater expansion an even larger cut may be necessary.

He said, however, that he expects the ECB's next rate cut to coincide with the annual IMF conference at

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