Comments by ECB governing council member, Madis Muller
- A timely exit from temporary emergency measures as the economy improves is just as important as decisive policy action during the crisis
- This will minimise the risk of undesirable side effects of accommodative policy being kept in place for longer than necessary
- Ultra low rates have been around for longer than initially expected, so need to study the impact this may have on the financial sector, changes in real economy
There is a time and place for everything and while Muller's argument makes sense from a central bank playbook, now isn't the time to be talking about exiting those measures just yet - not when the recovery phase is still in question.
