Why June is set to be a decisive meeting for the ECB


During prepared remarks on Wednesday’s ECB meeting, President Mario Draghi said that the ECB stands ready to use “all available instruments” if the economic situation in the euro zone were to deteriorate further.

The ECB ended asset purchases of European government bonds in December, having expanded its balance sheet to over 2.6 trillion euros, but is continuing to reinvest payments from maturing securities under the program “for an extended period of time past the date when we start raising the key ECB interest rates.”

When asked about the likely policy response if economic data were to worsen, Rehn told CNBC, “It is too early to say, speculate such that we have clearly said that we are ready to use or adjust all of our instruments as appropriate,” adding that “the next time we are going to have a monetary policy meeting in June we will also have a quarter of macroeconomic projections at our use and depending on the message of that economic assessment then we can judge how we proceed to our monetary policy stance.”

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