ECB to use bond purchases to guide rate expectations, Schnabel says By Reuters
FRANKFURT (Reuters) – The European Central Bank is set to use its bond-buying programme to guide investor expectations about an interest rate hike as the latter won’t come until the former ends, ECB board member Isabel Schnabel said on Monday.
Schnabel said that the inflation outlook is improving and it’s less important to what extent a central bank purchases or when a decrease in the pace at which net asset purchases begins, but when these purchases cease.
The end date is what signals that conditions are improving for an increase of policy rates. It will be necessary to provide guidance and precise timing when it is time.
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