Another Bank official, Slovakia’s central banker Peter Casimir, has called for an end to the European Central Bank’s bond-buying program, which was designed to boost inflation in the eurozone.
In particular, in an interview with Bloomberg, Mr. Kazimir said that the Asset Purchase Program (APP) could expire in August, but noted that this should not mean that the way is open for an immediate increase in ETC interest rates.
“Trading activity declines in August, so it would be a good time to end the program,” said the board member. of the ECB.
It is recalled that the same position was recently expressed by the French central banker, François Villeroua de Gallo, saying that the bond markets could be terminated in the third quarter of the year, as well as the member of the Board. of the ECB Isabel Snabel.
Like Villeroua, Casimir said the ECB should change its guidance, which currently says the bank’s interest rates will rise after the bond market closes.
“The time has come to start thinking about separating the two issues,” Kazimir said.
For his part, however, it was noted that yesterday, the Spanish central banker Pablo Hernandez de Kos had said that the withdrawal of financial support should be done gradually, stressing that an early tightening would hurt the economy.
Source: Capital
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