In an interview with Reuters, the ECB’s member of “Governing Council, Ardo Hansson, said that the bank should introduce a “set of measures” as its “next” step which will cover grounds “beyond a decision on asset purchases”.
In Hansson’s words:
“What I would advocate is a somewhat broader recalibration. We have a range of instruments already under implementation. And maybe a few that we could in addition bring to the table for consideration.”
“There’s various refinancing operations and the details of forward guidance could be more precise about interest rates”.
In fact, Hansson also suggested another “option worth debating”, wherein ECB needs to make its “guidance symmetrical”, whereby it should stipulate its “willingness to increase monthly asset” purchase given the changes in outlook occur but it should also “cut” the same.
ECB has been spending “large amounts” as the debt mature, therefore the bank could also “make better use of its reinvestment policy”, although very “little” has been said about “these buys”.
References:
reuters.com
In Hansson’s words:
“What I would advocate is a somewhat broader recalibration. We have a range of instruments already under implementation. And maybe a few that we could in addition bring to the table for consideration.”
“There’s various refinancing operations and the details of forward guidance could be more precise about interest rates”.
In fact, Hansson also suggested another “option worth debating”, wherein ECB needs to make its “guidance symmetrical”, whereby it should stipulate its “willingness to increase monthly asset” purchase given the changes in outlook occur but it should also “cut” the same.
ECB has been spending “large amounts” as the debt mature, therefore the bank could also “make better use of its reinvestment policy”, although very “little” has been said about “these buys”.
References:
reuters.com