The European Central Bank will maintain its ultra-easy policy stance until it is happy with the path of inflation in the euro zone, ECB’s policymaker Philip Lane said, citing a new round of cheap loans to banks as one of the available tools.
“What we have now is the forward guidance for 2018 and the accommodative monetary stance is there until we see convincing evidence that inflation is on a sustainable path toward the target,” Lane, who heads the Irish central bank, said.
The ECB is due to decide next month on the future of its 2.3 trillion euro bond-buying program, with sources telling Reuters a cut in the pace of buying is on the cards.
“What we would be doing in the autumn is to work out the calibration of our monetary policy instruments,” he added.
“Of course we’ve accumulated a big stock at this point as well and then you’ve other measures that are not currently active that as a matter of logic, they are part of what can be done such as versions of TLTROs (targeted longer-term refinancing operations).”
Source: Reuters (Reporting By Padraic Halpin; Writing by Francesco Canepa in Frankfurt)