Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News  >  Interest Rates

News : Interest Rates

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 

ECB may end bond buying in 2018 if economy stays strong: Nowotny

share with twitter share with LinkedIn share with facebook
share via e-mail
0
01/02/2018 | 07:43pm CET
FILE PHOTO: The European Central Bank headquarters are pictured in Frankfurt

The European Central Bank may end its stimulus programme this year if the euro zone economy continues to grow strongly, ECB rate-setter Ewald Nowotny told a German newspaper.

The ECB has said it will buy bonds at least until September and it is widely expected to wind down the 2.55 trillion-euro scheme, the centrepiece of its efforts to revive inflation in the euro zone, after that.

Nowotny's comments, echoing those of board member Benoit Coeure at the weekend, are likely to help cement those expectations.

"If the economy continues to do so well, we could let the programme run out in 2018," Nowotny told Sueddeutsche Zeitung in an interview carried out before Christmas and due to be published on Wednesday.

The ECB's stimulus has helped pull the euro zone back from the brink of deflation, with price growth now comfortably above 1 percent.

Even if the inflation rate is still expected to miss the ECB's target of close to but below 2 percent for years to come, Nowotny said policymakers should be flexible about it.

"It's not easy to explain why 1.5 percent isn't enough and 1.9 percent would be better," he said. "That's why I think we should not see that too dogmatically."

(Reporting By Francesco Canepa, editing by Larry King)

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Interest Rates"
01/19 Global stocks rise as shutdown brews, bond yield at three-and-a-half year high
01/19 Global stocks rise as shutdown brews, bond yield at three-and-a-half year high
01/19 Stocks rise as shutdown brews, bond yield at 3-1/2 year high
01/18 Global stocks pause after rally; U.S. bond yields hit 10-month high
01/18 Global stocks pause after rally; U.S. bond yields hit 10-month high
01/18 Global stocks pause after rally; U.S. bond yields hit 10-month high
01/18 Banking on Lower Tax Rates
01/17 Mixed New Year messages from Bank of England on next rates move
01/17 Goldman investors rattled by latest plunge in bond trading
01/17 Euro surge threatens profitable bond trades
Latest news "Interest Rates"
Advertisement