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ECB’s Lane: Main tools of policy adjustments are rates & forward guidance … FX STREET June 19, 2018 at 06:21PM

ECB’s Lane: Main tools of policy adjustments are rates & forward guidance … FX STREET

 

ECB’s Lane: Main tools of policy adjustments are rates & forward guidance

By Eren Sengezer

Speaking to Reuters on the sidelines of the ECB’s central bank conference, Irish central bank chief and the ECB’s governing council Philip Lane said that It would take a sizable shock to the world economy to change their decision to end net purchases.

Key quotes

  • You never want to rule it out but the main tools of adjustment are the forward guidance and interest rates.
  • Hanging on to the 2.6 trillion euro pile of bonds that the ECB has bought and reinvesting cash from maturing debt would in itself lower long-term borrowing costs by about 100 basis points.

 

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