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4 May 2015
ECB QE working well, no need to halt it prematurely – ECB’s Constancio
FXStreet (Mumbai) - In an interview with a Dutch daily, the European Central Bank's (ECB) Vice President Vitor Constancio said that the central; bank’s bond-buying program will not be ended prematurely even if Europe's economy recovers more rapidly than expected.
Key Quotes:
"The program is working well. Why should we think of discontinuing it when inflation is negative and inflation expectations are nowhere near our medium-term goal of close to 2%?"
"We only started it a few months ago. It would be very strange if we were already talking about stopping."
"There is no generalized asset overvaluation in the euro area, that is partly what we want to achieve through our program, this so-called portfolio shift.
The only danger is that the 'search for yield' might get out of hand. We need to keep a close eye on that. It is the job of macro prudential policy, not of monetary policy, to avoid the build-up of bubbles."
Key Quotes:
"The program is working well. Why should we think of discontinuing it when inflation is negative and inflation expectations are nowhere near our medium-term goal of close to 2%?"
"We only started it a few months ago. It would be very strange if we were already talking about stopping."
"There is no generalized asset overvaluation in the euro area, that is partly what we want to achieve through our program, this so-called portfolio shift.
The only danger is that the 'search for yield' might get out of hand. We need to keep a close eye on that. It is the job of macro prudential policy, not of monetary policy, to avoid the build-up of bubbles."