ECB tapering need not be traumatizing: Coeure
Monetary policy shift has already started with little pain says policy maker
European Central Bank executive board member Benoit Coeure is trying to calm nerves as the bank continues its slow shift towards actually talking about an end to stimulus.
“The reality is quite different” from what pessimists see as forced choice between traumatizing small moves and a forced march to normalization, Bloomberg quoted Coeure as saying.
“We scaled back our asset purchases without undermining the support given to the economy; so I would argue that we have already adjusted our monetary policy, and this was made possible by the continued improvement in the economic situation.”
“If needed, the Governing Council will continue to adjust its instruments both qualitatively and quantitatively. But when this is needed, it should do so carefully and flexibly, and based on what matters for us within the framework of our mandate: the inflation outlook.”