ECB’s Cipollone Says Rate Cuts Should Take QT Into Account

Interest-rate decisions by the European Central Bank shouldn’t overlook the tightening effect on monetary policy from unwinding past asset purchases, according to Executive Board member Piero Cipollone.

In comments at an event organized by MNI, the Italian official said that while policy rates remain the primary instrument to adjust the ECB’s stance, the role of quantitative tightening in influencing financial and financing conditions – through the yield curve or bank lending — should also be considered.