An executive board member of the European Central Bank (ECB) has told CNBC that investors cannot exclude a reduction in the central bank’s bond-buying program, but added that it was too early to discuss monetary tightening.
When asked if central bank watchers could exclude a reduction of asset purchases this year, as most market participants believe, Peter Praet, chief economist at the ECB, said: “No.”
“We will have a Governing Council meeting to make that assessment on the basis of today’s information. I will not conclude in that direction,” he said.
President Mario Draghi said in a speech on Thursday that the bank’s loose monetary policy stance remained appropriate, given that there is not sufficient changes to the inflation outlook in the region.
