Sunday, a top European Central Bank policymaker described how the bank will approach an asset purchase plan to tackle low inflation in the single currency bloc, saying that such a program “would not be about quantity, but about price.”
The ECB acknowledged after its policy meeting in early April that it is open to turning on its money-printing presses to keep inflation from staying too low, though it has not yet shown any public signals of starting quantitative easing (QE) yet.
“Asset purchases are an instrument that we are ready to use if we deem necessary,” Benoit Coeure, who sits on the ECB’s 6-member Executive Board, said a speech at a conference organized by the International Monetary Fund (IMF).
“Further monetary easing is … not excluded, but remains contingent on outcomes,” Mr. Coeure said. “If such easing is called for, the Governing Council is unanimous in its commitment to use also unconventional instruments within its mandate.”
Mr. Coeure said the ECB would have to decide whether asset buys would be useful and added what he called “a few qualifying remarks” about possible targeted asset purchases by the ECB.
Full article: ECB Will Turn On Its Money Printing Machine To Fuel Needed Inflation (Live Trading News)