Mersch Supports QE Until Inflation Target Hit

May 18, 2015 Share Print 0

The European Central Bank needs to keep up its pace of “intervention” until low price inflation is back on target, a senior policy setter said on Monday.

“We need to maintain the pace and volume of our interventions … so that inflation rises back towards 2 percent as quickly as possible and that monetary policy can begin once more to normalise,” Yves Mersch, a member of the ECB’s Executive Board, said in the text of a speech.

The remarks show that Mersch, who had been sceptical about the launch of the 60-billion-euro-a-month programme to buy chiefly government bonds, is supportive of its rollout until its aim has been fulfilled.

Reuters

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Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA

Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.