“European Central Bank policy makers should continue to withdraw unconventional tools designed to bolster bank lending as financial markets recover, Executive Board member Gertrude Tumpel-Gugerell said.
“The unwinding of our non-standard monetary policy measures has to go forward as financial conditions improve, not least to prevent moral hazard and delay in the needed financial sector restructuring,” she said at a conference in Frankfurt yesterday. At the same time, “governments have to work on regaining confidence, putting the necessary reforms in place.”
The ECB has phased out some of its longer-term refinancing measures introduced to fight the financial crisis and PresidentJean-Claude Trichet will announce in June whether the central bank will maintain unlimited funding over three months. ECB council member Luc Coene said on May 11 non-standard measures will be phased out “when possible.” ”
If you enjoy the content at iBankCoin, please follow us on Twitter
