ECB’s Stournaras Says ‘Far Too Early’ to Discuss Stimulus Taper.The European Central Bank has a long way to go to meet its inflation target so it’s “far too early” to discuss gradual removal of monetary stimulus, Governing Council member Yannis Stournaras said on Friday.
“Of course monetary policy will continue to be accomodating until inflation is at a desirable level, which is 2 percent or slightly lower,” Stournaras, who is also the governor of Greece’s central bank, said in a Bloomberg TV with Guy Johnson in Athens. “There is still long distance from this target.”
Yannis Stournaras on Nov. 25.
Monetary policy has made a “quite substantial” contribution to the fact that inflation rate in Europe is rising and growth is better than before, he said. The ECB has delivered on its goal even though “sometimes markets are very impatient, they want it delivered now,” according to Stournaras.
The Governing Council faces a decision on Dec. 8 whether to extend a 1.7 trillion-euro ($1.8 trillion) quantitative-easing program beyond the current deadline in March. While President Mario Draghi said this week that the recovery remains reliant on continued monetary support, some policy makers believe the ECB may have room to put off some decisions on the future of its bond-buying program until early next year.
“ECB takes a long term stance, you must have trust in the ECB,” Stournaras said. “We’re doing the right thing and on the eighth we are going to discuss the situation, the new forecast and then we’ll decide what to do.”
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