A stronger growth and the absence of deflation paves the way for an exit from the ECB’s unconventional measures to boost stimulus measures.
It said Jens Weidmann, Bundesbankchef and the ECB’s governing council member, on Thursday, according to Bloomberg News.
”The continued economic recovery opens up a perspective of a monetary policy normalization”, where timing and pace are dependent on the sustainability of the increase in inflation, he said.
He said that it is for the credibility of monetary policy is crucial to the expansionary policy will be at an end when it becomes necessary, from a prisstabilitetsperspektiv.
Tillgångsköpen have been an emergency measure to combat the threat of a downward spiral of prices, which is now increasingly the entry in the background.
”Currently, an expansionary monetary policy justified to support the economic recovery and hence the rate of inflation in the euro area, and we agree on it in the council. But there are different views on how much we need to press on the stimulansgasen and which instruments we should use,” he said.
The GOVERNING rådsledamoten Ewald Nowotny said at the same event that the QE-program will not become a permanent part of the ECB’s policy, even if it had been justified, given the deep crisis.
Questions and comments always welcome in the newsroom[at]tradingportalen.com