August 30, 2019 / 6:34 AM / 3 months ago

Much too early for big stimulus package: ECB's Lautenschlaeger

FILE PHOTO - Sabine Lautenschlaeger, executive board member of the European Central bank (ECB), looks on during the Bundesbank Banking Congress "Symposium on Financial Stability and the Role of Central Banks" in Frankfurt, February 28, 2014. REUTERS/Ralph Orlowski

BERLIN (Reuters) - It is too early for the European Central Bank to consider a “huge package” of stimulus measures in response to increasing economic uncertainty in the euro area, executive board member Sabine Lautenschlaeger said.

In an interview with Market News conducted on Wednesday, Lautenschlaeger said that despite the impact of political shocks like trade tensions and Brexit and the downward trend in Germany’s manufacturing sector, there were also positive signs on the labor market and resilient domestic growth.

“In my opinion, based on the current data, it is much too early for a huge package,” she said in the interview which was placed on the ECB’s website on Friday.

“And I am still convinced that the Asset Purchase Programme (APP) is the ultima ratio,” she added. “It should only be used if you have a risk of deflation; and the risk of deflation is nowhere to be seen now.”

Reporting by Thomas Escritt; Editing by Tassilo Hummel

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