Speaking to Reuters on the sidelines of the ECB’s central bank conference, Irish central bank chief and the ECB’s governing council Philip Lane said that It would take a sizable shock to the world economy to change their decision to end net purchases.
Key quotes
- You never want to rule it out but the main tools of adjustment are the forward guidance and interest rates.
- Hanging on to the 2.6 trillion euro pile of bonds that the ECB has bought and reinvesting cash from maturing debt would in itself lower long-term borrowing costs by about 100 basis points.
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