LONDON (Reuters) - The European Central Bank has “reiterated” its forward guidance, the bank’s chief economist Peter Praet said on Monday.
Speaking at an economics conference in London, Praet added the ECB’s job wasn’t done despite the euro’s economic recovery and that a smooth exit from crisis-era policies would only be possible if it kept a tight grip on short-term market rates.
“In a normalisation process you want normalisation process to be orderly... so you must maintain a strong grip on short term rates,” Praet said.
(This version of the story corrects headline and lead to show Praet said ECB forward guidance had been ‘reiterated’, not ‘reactivated’)
Reporting by Marc Jones, editing by Fanny Potkin