September 28, 2017 / 9:18 AM / 10 months ago

ECB should prepare exit from 'unconventional' monetary policy

BERLIN (Reuters) - Germany’s leading economic institutes on Thursday called on the European Central Bank (ECB) to prepare for an exit from its ultra-loose monetary policy, warning that the unprecedented stimulus could bring severe risks in the long-term.

FILE PHOTO: The headquarters of the European Central Bank (ECB) (R) is seen next to the famous skyline in Frankfurt, Germany, April 9, 2017. REUTERS/Kai Pfaffenbach /File Photo

“There is much evidence that the upswing in the euro zone has consolidated,” the institutes said.

“In this environment, the ECB should prepare for the exit from its very expansive monetary policy and in particular from its unconventional measures,” they added.

The ECB in the short term should announce that it plans to gradually taper its bond-buying programme starting from the turn of the year - provided that the euro zone economy continues to perform favourably, the institutes said.

Reporting by Michael Nienaber,; editing by Joseph Nasr

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