ECB to talk dropping new stimulus pledge, sources say
Report suggests policy makers are ready to express more confidence in economy
European Central Bank officials will discuss next week whether to drop pledges to add new stimulus if needed, Reuters reported Tuesday, citing four sources close to the matter.
Europe’s economic recovery has continued to beat expectations, and the news signals that policy makers are finally acknowledging the changing situation and ready to drop reference to downside risks. The comments come ahead of the ECB policy meeting on June 8.
“After the French election the political risk is clearly down and economic indicators are by and large positive, so it’s time to acknowledge this,” one anonymous Governing Council member was quoted by Reuters as saying.
“The positive environment has been relatively short compared to the long periods of crises we had,” another source said. “It wouldn’t be responsible to base a major policy shift on such a short upswing.”