The GOVERNING council considered in June to remove a lättnadsbias in the QE program if the outlook improves.
It is clear from the minutes of the ECB’s policymöte on 8 June, which was published on Thursday, according to Bloomberg News and Reuters.
At the meeting left both interest rates and QE program unchanged.
Then the probability of additional accommodation through unconventional measures have reduced the clear so they discussed that the away lättnadsbiasen. They chose to remove the sänkningsbiasen as regards the interest rate, but also considered that it could be argued that ”improved economic environment with reduced svansrisker, in principle, also indicates that the review biasen with respect to the program of asset purchases,” the minutes said.
The ECB has so far stated that they can extend tillgångsköpen in time or scope, if necessary.
They were also concerned about the marknadsreaktionerna from changes in the language.
”There was a concern that even small and incremental changes in communication can be misinterpreted as a signal of more fundamental changes in the policyinriktningen,” it says.
”Although there was good reason at this point to keep lättnadsbiasen in the purchase programme, as it was noted that if the economic expansion continues and the confidence in the inflation outlook further improved, so there may be reason to see if biasen is to be retained,” it says in the protocol.
The reasons to keep lättnadsbiasen was that the stronger the growth will still need to prove themselves in a stronger inflationsdynamik.
The policyansvariga also argued in favour of that than the change in the QE-the language could be interpreted to mean that the ECB’s reaktionsfunktion changed, even if an extension of the tillgångsköpen become less likely.
They also noted that the downside risks from the domestic economy and the political factors decreased significantly, although the impact of the political elections on the economic confidence or on financial markets should not be overestimated.
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