Polish economists say rate cuts damaged trust in ECB

Euro sign, Frankfurt

The distrust in the European Central Bank (ECB) in the wake of the financial crisis could, in part, be a product of its decision to cut interest rates, according to a working paper published by the National Bank of Poland earlier this month.

In Links between the trust in the ECB and its interest rate policy, Maciej Albinowski, Piotr Ciżkowicz and Andrzej Rzońca say "trust in the ECB has suffered from the crisis' outburst".

Moreover, they find that when households have "pessimistic expectations"

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