ECB's main issue is how quickly stimulus can be reduced: Hansson

Economy
© Reuters. FILE PHOTO: The European Central Bank (ECB) headquarters in Frankfurt© Reuters. FILE PHOTO: The European Central Bank (ECB) headquarters in Frankfurt

TALLINN (Reuters) – The outlook for the euro zone economy has improved so the question now is how quickly central bank support can be reduced without jeopardizing growth, European Central Bank policymaker Ardo Hansson told an Estonian newspaper.

“The geopolitical risks have not yet disappeared. We are talking about the base scenario, which has definitely improved, but the risk is not gone.” Hansson was quoted as saying in Estonian daily Postimees on Tuesday.

“Now the question is how quickly can the central banks’ offered support for the economy be reduced so that a positive economic trajectory is maintained,” Hansson, Estonia's central bank chief added.

The European Central Bank rate-setting Governing Council will next meet on June 8 and markets expect only an incremental change in the bank's policy message.

“We all think about how and when to begin to implement the transition (out of stimulus) and how to communicate it. This must be done very carefully,” Hansson said.

Disclaimer:Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Economy News

Leave a Reply

Your email address will not be published. Required fields are marked *