Central Banks

ECB Should Discuss Ending Bond Reinvestments Sooner, Wunsch Says

  • Belgian central bank chief speaks to Bloomberg Television
  • Jump in Italian yields shouldn’t impact talks much, he says
WATCH: ECB Governing Council Member Pierre Wunsch says, “we don’t have to hike anymore” if inflation numbers keep aligning with the forecast.Source: Bloomberg
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European Central Bank Governing Council member Pierre Wunsch said officials should consider a quicker start to rolling off almost €1.7 trillion ($1.8 trillion) in bonds bought during the pandemic — despite a recent jump in Italian bond yields.

While the ECB has said it will reinvest any maturing securities from the so-called PEPP portfolio through end-2024, “I don’t think there is any any strong rationale for doing that today,” the Belgian central bank chief told Bloomberg TV.