ECB: Praet reiterates the need to maintain monetary easing for the time being – Goldman Sachs

Timothy Munday, Research Analyst at Goldman Sachs, notes that speaking yesterday in Madrid, ECB Executive Board member Peter Praet said that the ECB was not yet ready to exit its asset-purchase programme while stressing that “rates will stay at the current level, or below, until well after the ECB’s asset purchases”.

Key Quotes

“Based on the current information, he added that “this is the most likely thing that will happen, there is a strong logic in the sequence of our forward guidance”. Similar views were conveyed yesterday by ECB Governing Council member Jan Smets, who highlighted that “Our forward guidance is clear and we have to stick to that. If other views have been expressed on this issue, they are reflecting a minority position”. These statements are in line with our base case.”