ECB member Yves Mersch speaking at the ZinsFORUM in Frankfurt 6 Dec 2017
- Wages and inflation seem to have reversed the trend
- It will no longer be necessary to buy assets as a result of existing forces in due course
- If ECB removes monetary policy stimulus prematurely and too quickly, asset prices could collapse and yields rise sharply
- But need to be aware that the longer the program last, risks are greater
- A credible perspective for exiting the program is needed, it also has to be a measured approach
- ECB must think hard in 2018 about policy pre-commitment
Some minor points touching on the ECB's QE program. Mersch is one of the keynote speakers at the event. Not likely to comment on anything too out there, and what's been said so far is very much by-the-book with regards to the ECB's plans to take out its stimulus package.
