ECB’s Vasiliauskas: Tweak to Guidance Was a Logical Step

European Central Bank Governing Council member Vitas Vasiliauskas said Friday that against the backdrop of a steadily improving economic situation, it was “now a good time to make communication steps” regarding the future of quantitative easing (QE).

Vasiliauskas, head of the Lithuanian central bank, told local media that the decision to remove the so-called QE “easing bias” from the ECB’s forward guidance was a “very logical step.”

The ECB on Thursday removed the reference to the possibility of lifting monthly QE volumes, a tweak to the guidance that Action Economics said had mainly a signalling effect as the option to extend the current program of EUR30 billion per month was still left in place.

Vasiliauskas also that while the ECB could not ignore the prospect of a trade war, he added that “I believe we haven’t heard anything new” from US President Donald Trump.

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