ECB's Lautenschläger: Monetary policy should return to normal as soon as can be justified

Eren Sengezer FXStreet

Key highlights from the speech by Sabine Lautenschläger, Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB, IEP Mittagsgespräch, 30 June 2017:

The weak economy and low inflation have obliged the ECB to pursue a very loose monetary policy
Even though I am critical of some of these instruments, an expansionary monetary policy stance was generally appropriate in order to fulfill our role
Nonetheless, I consider it imperative that monetary policy should return to normal as soon as can be justified
Monetary policy has to adjust at the right time, which is as soon as inflation is on a stable path towards our objective
Although inflation is not yet on a stable path towards our objective, all the conditions are in place

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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