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ECB’s Mersch Says Stimulus Should End as Soon as Possible

  • Board member says inflation path not yet self-sustaining
  • Size of quantitative easing means exit will take some time
Photographer: Akos Stiller/Bloomberg
Updated on

The European Central Bank’s extraordinary stimulus measures are not intended to be permanent and should be withdrawn as soon as possible, Executive Board member Yves Mersch said.

“The size of the purchase program means that will take some time, but a permanent commitment to our bond-buying, for example, would set the wrong incentives for government financing,” Mersch said in a speech in Frankfurt on Thursday. That would be “a development that would ultimately run up against the ban on monetary financing and so be incompatible with our mandate.”