Economics
ECB Bond-Buying Could End in Third Quarter, Villeroy Says
- Move needn’t trigger a rate hike, Bank of France chief says
- ECB has begun its exit from pandemic stimulus measures
Francois Villeroy de Galhau
Photographer: Cyril Marcilhacy/BloombergThis article is for subscribers only.
The European Central Bank could end net asset purchases as soon as the third quarter of 2022 without triggering an interest-rate increase shortly afterward, according to Governing Council member Francois Villeroy de Galhau.
Villeroy said it’s no longer appropriate for the ECB to keep net bond-buying under its regular APP program open-ended, following reductions through October, because it “ties our hand for too long.” There’s also less reason to maintain stimulus as inflation converges toward the 2% medium-term target from elevated levels now, he said.