ECB’s Benoit Coeure on the wires

  • I expect the link between asset purchases and inflation in the policy message to be changed between now and Sep 2018
  • Most members agreed that we need flexibility on the end date, September 2018 is still far away
  • Expect a change in language when the Governing Council is sufficiently confident that net asset purchases are less needed for inflation to return towards 2% in a sustainable way
  • Now is not the right time to start a discussion on the ECB’s definition of price stability, in either direction
  • Asset purchases will remain an exceptional instrument, they will not be a permanent part of our monetary policy
  • Says it’s logical to expect that this QE extension is the final one

Nothing doing in the euro on these comments. 1.1740 we snooze at.

Ryan Littlestone

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