Economics
Some ECB Officials Wanted Looser Link Between QE Exit and Rates
- Some suggested changing wording on asset purchase program
- Current plan is to end bond buying “shortly” before rate hike
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Some European Central Bank officials want to loosen their commitment to continue bond buying until “shortly” before interest rates rise, according to officials familiar with the discussions.
The central bank’s new guidance on interest rates announced on Thursday potentially pushes the odds of a hike out by several years. Some officials are concerned that their current pledge on asset purchases indicates a similarly long-term commitment, according to the people.