Investors should not expect a ramping up of asset purchases by the European Central Bank (ECB) once its current program comes to an end, one of its board members told CNBC.
“I do not expect that the market would be right to anticipate a further increase of asset purchases at the end of our program,” Yves Mersch, member of the executive board of the ECB, told CNBC Thursday.
His comments suggest that the ECB will likely keep its quantitative easing (QE) running for a sufficient amount of time, reducing the need for any further action once its program has been completed.
However, Mersch’s caveat was that it was uncertain when this completion would come as the bank will take a gradual approach to monetary policy normalization.
“This path (of monetary tightening) is still needing a certain amount, a certain amplitude of monetary accommodation,” Mersch said about the bank’s decision to slowly reduce the level of asset purchases.