An early tightening of monetary policy would hurt the economy, ECB official Pablo Hernandez de Kos warned, stressing that the withdrawal of financial support should be gradual.
In particular, as reported by Reuters, speaking at an economic event, the central banker of Spain argued that “the direction in which we should go is clear, but we should not draw premature conclusions about the timetable.”
“The process should be gradual and data-dependent at the same time,” de Kos said.
He stressed that the rising trend of inflation has surprised the ECB in recent quarters and in recent months, however, an early tightening of the monetary would only aggravate the negative conditions that have formed.
It is recalled that yesterday, Wednesday, two officials of the European Central Bank appeared in a different tone in their statements, in favor of the termination of the ECB bond markets,
In particular, Isabelle Schnabel argued that the risk of a slow response to inflation is increasing, with Villeroua de Gallo pointing out that bond purchases should probably stop by the third quarter of the year.
Source: Capital
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