The role of technical factors in euro area inflation-linked swap rates
When long-term inflation-linked swap (ILS) rates for the euro area peaked in summer 2023, some observers expressed concerns that ILS rates reflected not only inflation compensation, but also non-fundamental “technical” factors.
- When long-term inflation-linked swap (ILS) rates for the euro area peaked in summer 2023, some observers expressed concerns that ILS rates reflected not only inflation compensation, but also non-fundamental “technical” factors.
- Such factors potentially reduced the usefulness of ILS rates in terms of gauging inflation expectations and risks.