AFP, Frankfurt Am Main :
European Central Bank governors mulled sending a stronger signal of confidence in the eurozone economy last month as a hint at a possible roll-back of its easy money policies, but decided against it for now, accounts released Thursday showed.
Financial markets are currently on high alert as to any possible signals about when the ECB might begin “tapering” or rolling back a range of unprecedented emergency measures designed to prop up the single currency area’s crisis-battered economy.
And ECB watchers minutely monitor the slightest changes in language in all of the central bank’s communications.
At a policy meeting in the Estonian capital of Tallinn last month, the ECB’s governing council voted to remove a reference to a so-called “easing bias” from the bank’s regular communications, minutes of the meeting revealed.
An “easing bias” is a signal to the markets that the ECB could lower interest rates from already historic lows if needed.
Governors also considered dropping a similar message that it could further ramp up its bond-buying scheme known as quantitative easing, if needed.
European Central Bank governors mulled sending a stronger signal of confidence in the eurozone economy last month as a hint at a possible roll-back of its easy money policies, but decided against it for now, accounts released Thursday showed.
Financial markets are currently on high alert as to any possible signals about when the ECB might begin “tapering” or rolling back a range of unprecedented emergency measures designed to prop up the single currency area’s crisis-battered economy.
And ECB watchers minutely monitor the slightest changes in language in all of the central bank’s communications.
At a policy meeting in the Estonian capital of Tallinn last month, the ECB’s governing council voted to remove a reference to a so-called “easing bias” from the bank’s regular communications, minutes of the meeting revealed.
An “easing bias” is a signal to the markets that the ECB could lower interest rates from already historic lows if needed.
Governors also considered dropping a similar message that it could further ramp up its bond-buying scheme known as quantitative easing, if needed.
