The European Central Bank (ECB) must stick to its easy monetary policy if inflation in the Eurozone needs to be boosted, the German central bank, Bundesbank, Vice President Claudia Buch told Reuters on Friday.
She said, “in light of the forecasts, it is…clear that monetary policy needs to continue to provide support for inflationary pressures in the euro area to consolidate sufficiently.”
The Bundesbank’ remains concerned that the ECB’s purchases of government bonds risked blurring the boundaries between monetary and fiscal policy, and that low interest rates could tempt investors to take more risks than they can bear, Buch added.
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