ECB Seeking Stimulus Flexibility

August 18, 2017 Share Print 0

The European Central Bank wants more scope to unleash monetary stimulus even as it heads toward unwinding it.An account of the Governing Council’s July meeting released on Thursday shows that officials are still uncertain how to signal changes in their policy settings as the economic outlook improves and the need for broad-based bond purchases lessens. Reaching a consensus is critical if they are to avoid missteps as the institution enters a new phase of its multi-year battle to avert deflation and restore euro-area price stability.Some policy makers signaled they are anxious to press ahead with adjusting the ECB’s forward guidance to avoid a “misalignment” between communication and the assessment of the economy, while others were looking for an insurance should the situation worsen. They argued for “more policy space and flexibility” to adjust stimulus “if and when needed, in either direction” in response to any overreaction to economic improvements in financial markets.

Source: ECB Searches for Stimulus Flexibility as End of QE Approaches – Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Bio
Twitter
Latest Posts

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.