Coeure Sees Previous QE Cutback as Model for Next ECB Moves
- Stimulus tools can be adapted as economic recovery progresses
- ECB must be transparent in communications, board member says
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The European Central Bank will use its action last December as a blueprint for how to adjust monetary policy going forward, according to Executive Board member Benoit Coeure.
Criticizing some central-bank observers for seeing the ECB’s choices as being between traumatizing the markets with every small move, and putting the institution on a forced march to normalization, Coeure said “the reality is quite different.” He told Le Monde and La Stampa that December’s announcement of a cut in monthly bond purchases to 60 billion euros ($68 billion) from 80 billion euros, which took effect in April, was an example of how carefully it shifts stimulus.