Well , he didn’t exactly say that but in essence, that’s what he means. He says the ECB’s unconventional policy measures are designed to be “exit-friendly” by essentially running out by themselves if not extended.
Remember, the ECB’s big liquidity injections into the market have been made via fixed-term repos extending out for one-year at the longest. If they are not renewed, they will begin to roll off during 2010.
Financial markets have notably “relaxed” since the spring, Weber says. With a ECB policy meeting this week, he is steering away from comments on the short-term outlook for policy.
