When crisis is over, ECB will eventually tighten policy, Schnabel says

FILE PHOTO: Isabel Schnabel attends 29th Frankfurt European Banking Congress (EBC) at the Old Opera house in Frankfurt, Germany November 22, 2019. REUTERS/Ralph Orlowski

FRANKFURT (Reuters) - The European Central Bank will eventually tighten its ultra-loose monetary policy but only when the current economic crisis is over, ECB board member Isabel Schnabel said on Friday, rejecting predictions that it would bankroll governments permanently.

“The ECB will be careful to not choke the incipient recovery by initiating a tighter policy too early,” Schnabel said. “But when the crisis has been overcome and inflation has returned to a sustained path towards our aim, the ECB needs to step back, in line with its mandate.”

Reporting By Francesco Canepa; Editing by Kevin Liffey