ECB to take fresh look at easy money policy in June

AFP, FRANKFURT: European Central Bank governors will take a fresh look at their easy-money policy in June, with new economic forecasts on hand, an account of their April meeting showed yesterday.
June will bring new projections from ECB staff, "putting the governing council in a better position to take stock and reassess the sustainability of the recovery and the outlook for inflation".
The ECB buys 60 billion euros of government and corporate bonds per month and has set interest rates at historic lows.
The programme aims to pump cash through the financial system into the real economy, powering growth and driving inflation towards the central bank's target of just below 2.0 percent.
As the 19-nation eurozone has returned to growth and inflation increased -- overshooting the target in February before falling back in March and April -- calls from politicians and economists in some countries have grown for an end to the easy-money policy.
Financial markets have closely watched the carefully-weighed language of ECB statements for any hint as to when it could begin "tapering" (winding down) its bond-buying, a step policymakers say must come before any rise in interest rates.
Attention has so far focused on the council's assessment of the "balance of risks" to growth in the euro area, which ECB President Mario Draghi has in recent months maintained remain "tilted to the downside" even as the outlook has brightened.

ECB to take fresh look at easy money policy in June

AFP, FRANKFURT: European Central Bank governors will take a fresh look attheir easy-money policy in June, with new economic forecasts on hand, an account of their April meeting showed yesterday. June will bring new projections from ECB staff, putting the governing council in a better position to take stock and reassess the sustainability of the recovery and the outlook for inflation. The ECB buys 60 billion euros of government and corporate bonds per month and has set interest rates at historic lows. The programme aims to pump cash through the financial system into the real economy, powering growth and driving inflation towards the central banks target of just below 2.0 percent. As the 19-nation eurozone has returned to growth and inflation increased -- overshooting the target in February before falling back in March and April -- calls from politicians and economists in some countries have grown for an end to the easy-money policy. Financial markets have closely watched the carefully-weighed language of ECB statements for any hint as to when it could begin tapering (winding down) its bond-buying, a step policymakers say must come before any rise in interest rates. Attention has so far focused on the councils assessment of the balance of risks to growth in the euro area, which ECB President Mario Draghi has in recent months maintained remain tilted to the downside even as the outlook has brightened.