Inflation needs continued monetary policy support, and the recalibration of the ECB’s programme of asset purchases will be ”gradual and careful”.
It said the GOVERNING rådsledamoten Jan batter’s, who is also head of the belgian central bank, on Wednesday, reports Market News (MNI) according to Bloomberg News.
He said that he is for a prolonged drawdown of the purchases, QE-tapering, and to a ”certain duration” of importance for this QE-exit.
The ECB has its next meeting on October 26th where they will take a position on whether the economy warrants a stub exit from the QE program.
Bloomberg News reports, with reference to the sources, to the GOVERNING council at least agree to retain the commitment to hold interest rates low ”significantly longer” than the program of asset purchases.
To maintain this commitment would remove an element of uncertainty in the debate and to reassure investors that a rate hike is not imminent. The commitment can be strengthened given that the market may come to question whether it will be a long enough break between the end of the purchases and the first increase.
The wording on this part of the forward-looking guidance has been with since march 2016.
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