BERLIN The European Central Bank should roll back its monetary stimulus since inflation in the euro zone has reached its price stability objective, the head of Germany's Ifo economic institute said on Thursday as the central bank gathered for a policy meeting.
"It should now take the foot off the accelerator and reduce its bond purchases from April by monthly 10 billion euros," Clemens Fuest said, adding that the ECB otherwise risked overshooting its target.
The ECB decided in December to reduce its monthly bond purchases to 60 billion euros a month from 80 billion euros starting April but the buys are set to continue until the end of 2017.
The ECB is on Thursday expected to resist calls to tighten policy as it casts a cautious eye ahead to high-risk elections in the Netherlands and France during an upsurge in populist, anti-establishment sentiment.
(Reporting by Michael Nienaber, Editing by Balazs Koranyi)