ECB Discussed Removing Easing Bias on Bond-Buying Program
- Central bank publishes account of June 7-8 policy meeting
- Officials said communication on QE could be revisited later
Draghi Urges Persistence in Stimulus, Prudence Needed
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European Central Bank policy makers considered removing a pledge to increase their bond-buying program if needed when they met last month.
As the likelihood of calls for unconventional policy measures to be stepped up had “clearly diminished,” the Governing Council discussed removing the easing biases in their policy communication, an account of the June 7-8 meeting showed. While they ultimately opted only to change the wording on interest rates, “it was argued that the improved economic environment with vanishing tail risks, in principle, suggested also revisiting the easing bias with respect to the asset-purchase program.”