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REFILE-ECB should discuss pledge to keep policy ultra-easy in June: Vasiliauskas
May 18, 2017 / 8:53 AM / 6 months ago

REFILE-ECB should discuss pledge to keep policy ultra-easy in June: Vasiliauskas

(Adds Vasiliauskas to headline)

FRANKFURT, May 18 (Reuters) - The European Central Bank should start reviewing its pledge for continued, ultra-easy policy if economic data confirms the rebound in inflation is here to stay, ECB policymaker Vitas Vasiliauskas told Reuters.

The Lithuanian governor expected rate setters meeting in June to discuss the ECB’s guidance, which currently forecasts bond purchases at least until December and interest rates at current or even lower levels until well after that.

“We face with a better geopolitical situation so then we can expect discussions not only on the forward guidance but also on the balance of risk,” Vasiliauskas told Reuters.

“If hard data confirms our improved situation, then the logical step would be to discuss the easing bias,” he added.

But Vasiliauskas dismissed an argument that interest rates could start rising before the end of asset buys, sticking with the ECB’s pledge to end bond purchases first and only then touch interest rates. (Reporting By Balazs Koranyi and Francesco Canepa)

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