Business Irish

Sunday 22 April 2018

ECB not ready for QE expansion yet

The European Central Bank should take more time to assess the risks to its inflation outlook before policy makers discuss whether to expand stimulus, ECB Executive Board member Sabine Lautenschlaeger said.

"We don't have enough information right now to fully understand the underlying trend," Ms Lautenschlaeger said.

"From my point of view, it is really premature to talk about concrete measures in terms of broadening quantitative easing."

Ms Lautenschlaeger's comments signal that a decision about whether and how to adjust the ECB's €1.1 trillion bond-buying programme may not be on the table when the Governing Council meets in Malta later this month. As part of the six-strong Executive Board, the former Bundesbank vice president is involved in setting the agenda for the institution's monetary-policy meetings.

ECB President Mario Draghi, inset, warned again yesterday that an emerging-market slowdown and falling commodity prices pose new risks.

Irish Independent

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