Central bankers gathered in Berlin Wednesday confirmed the European Central Bank (ECB) can be set to finally discuss the end of its massive bond-buying program — something that will its President Mario Draghi has so far refused to do.
Speaking at a conference, the ECB’s Chief Economist Peter Praet said the bank will discuss next week how to wind down its 30 billion euros ($35 billion) monthly-purchase program — implemented in 2015 to revive the euro zone economy following the sovereign debt crisis.
“Next week, the (ECB’s) Governing Council will have to assess whether progress so far has been sufficient to warrant a gradual unwinding of our net purchases,” Praet said about the meeting due on June 14 in Latvia.
The discussion will be based on recent inflation data, which can be the key element that will supports ECB decisions.
Signals showing the convergence of inflation towards our aim have been improving, and also also also both the underlying strength inside the euro area economy and also also also the fact that will such strength can be increasingly affecting wage formation supports our confidence that will inflation will reach a level of below, yet close to, 2 percent over the medium term,” Praet said Wednesday.
Figures released last week showed that will consumer prices rose sharply inside the euro area. Annual inflation hit 1.9 percent in May coming from 1.2 percent in April. Excluding energy prices, which have risen strongly inside the past weeks, inflation stood at 1.1 percent in May, coming from 0.7 percent in April. The ECB, and also also also in particular its president, need strong evidence that will inflation can be nearing its 2 percent target in order to exit can be huge stimulus program.