1 Jul 2013
ECB looking carefully at forward guidance
FXstreet.com (Barcelona) - ECB’s executive board member Benoît Cœuré said over the weekend, on an interview with the Times, that the central bank is looking carefully at forward guidance, although is still too premature to decide on its application.
Moreover, Benoit Coeure said the European Central Bank has no plans from exiting its crisis-fighting tools, adding that it is prepared to expand the number of policy tools if necessary, one of them being the issuance of "forward guidance."
"The monetary stance of the ECB remains accommodative and we will, as we have said, keep an eye on all possible measures - standard and non-standard - to react if needed. We are not close to an exit" Coeure said.
Coeure added: "It is too early to say if we are going to take a bigger step in that direction. But in any case, we would like to convey the sense that we keep controlling the euro-denominated yield curve, and that the level of European yields remains adjacent to the current economic conditions and is not overly influenced by external shocks."
Moreover, Benoit Coeure said the European Central Bank has no plans from exiting its crisis-fighting tools, adding that it is prepared to expand the number of policy tools if necessary, one of them being the issuance of "forward guidance."
"The monetary stance of the ECB remains accommodative and we will, as we have said, keep an eye on all possible measures - standard and non-standard - to react if needed. We are not close to an exit" Coeure said.
Coeure added: "It is too early to say if we are going to take a bigger step in that direction. But in any case, we would like to convey the sense that we keep controlling the euro-denominated yield curve, and that the level of European yields remains adjacent to the current economic conditions and is not overly influenced by external shocks."