ECB’s Wunsch: Member dissent shouldn’t be ‘dramatized’
European Central Bank’s General Council members Pierre Wunsch stated on Friday that differing opinions on the central bank’s monetary policies shouldn’t be “dramatized.”
Wunsch stated that when it comes to the ECB’s monetary policy he wasn’t comfortable committing to the forward guidance for “such a long time,” nor did he want the quantitative easing to last for five to ten more years because of inflation going around 1.5% to 1.8%. Additionally, he said that the bank was “very far away” from conditions that would make raising interest rates a necessity.
Wunsch commented on the pandemic emergency purchase program (PEPP), saying it is “logical” to end it in March 2022 as planned, but noted that such discussions will take place after the summer. After PEPP ends, he asserted that the ECB will go back to the asset purchase program (APP) and other monetary instruments.
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