ECB's Wunsch: Dissent should not be dramatised
Remarks by ECB policymaker, Pierre Wunsch
Wunsch pretty much reaffirming the report yesterday that he was one of those opposed to the new forward guidance by the ECB. Even though he says that the dissent should not be dramatised, he's making clear he isn't in agreement to what has been put out.
- Not comfortable committing to forward guidance for such a long time
- Says would have pleaded for escape clause in forward guidance
- Not comfortable with 5-10 more years of QE just because inflation is at 1.5%-1.8%
- Logical conclusion is to end PEPP in March as planned
- After PEPP, will go back to APP and other instruments
- PEPP discussion will take place after the summer
He also adds that the central bank is "very far from conditions where we would consider hiking rates", though he's not shying away from calling for QE to end as per the above.