2018.01.1522:01:00UTC+00ECB’s Hansson Says QE Program Could End after September

Governing Council member Ardo Hansson said that the European Central Bank should revise its policy guidance accordingly before summer and should not have any issues exciting net asset purchases in one go after September.

While the policy maker views ECB's current policy stance as widely appropriate, he debated in an interview with Boersen-Zeitung that there was a need to make an adjustment to the central bank's communication.

He said that there are good reasons to downplay the significance of the net purchases in the ECB's policy guidance, adding a view to a potential exit to the quantitative easing program. He said that if growth and inflation continue to progress widely in accordance with the ECB's most recent projection, it would be 'certainly conceivable and appropriate' to stop the purchases after September.

He added that going to zero in one move should not be an issue and not a lot of adjustments will be needed.

Expressing concerns that the ECB might lage behind the curve in easing monetary stimulus as the eurozone recovers, he argued inclined towards a “timely, gradual exit.”

The euro extended gains following the release of the policymaker's comments, hitting $1.2293 and trading 0.5 percent higher on the day in Frankfurt. The yield on the benchmark 10-year German bund increased 0.1 basis point to 0.59 percent.