The European Central Bank will stick to its policy plan including bond buying and record-low rates for some time to come as it is not yet convinced the euro zone economy is back to rude health, its president and chief economist said on Thursday. Mario Draghi and Peter Praet’s remarks suggest the ECB won’t change its policy message this month despite mounting calls from Germany for it to wind down its stimulus. Draghi said he saw no need to deviate from the ECB’s stated policy path, which includes bond buying at least until the end of the year and record-low rates until well after that to stimulate inflation. “I do not see cause to deviate from the indications we have been consistently providing,” Mario Draghi said at a conference in Frankfurt. Yet ECB chief economist Peter Praet backed the sequence of the bank’s policy path, saying even introducing the notion of a rate hike would undo some of the economic stimulus brought by the ECB’s asset purchases.
Source: Reuters
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