EUR 36.48 For Business Accounts Only

The ECB will not be hasty to taper...

The report provides insight on the likely timing of a potential ECB tapering decision.
The aftermath of the global financial crisis was so severe that policymakers had to think out of the box and deviate from mainstream monetary policy tools. Since the end of 2008-beginning of 2009, a number of unconventional monetary policy tools have been employed; quantitative easing, negative short-term interest rates, yield curve targeting are some actions that numerous analysts argued were unprecedented. It is necessary to acknowledge that central banks have been facing a very challenging task, as they have been navigating in uncharted territory, for a number of years. It is not accidental that their approach has been largely experimental, and one of ‘trial and error’, as they have tried to adapt their policy stance to a fundamentally unresponsive, or, in some cases changing, global environment. This is also reflected in the recent monetary policy divergence among major central banks.
As economic fundamentals appear to be improving on both sides of the Atlantic there is widespread talk that the ECB will be increasingly looking for the right timing to unwind its ultra accommodative monetary policy stance. A number of analysts believe that the combination of stronger growth and rising inflation will put additional pressure on the Governing Council to reevaluate its strategy.