MNI BRIEF: Don't See An ECB APP Halt From June - BoI Visco

The European Central Bank's APP reinvestments should not be fully stopped if any changes to the programme are announced in June, Bank of Italy Governor Ignazio Visco said in London on Thursday.

“Our actions must be measured and predictable, and measured means not all at one time,” he said, adding that offering clear guidance and not surprising market on the matter was equally important to avoid unwelcome side effects.

On other matters, Visco told his audience that although there is no tradeoff between price and financial stability, there could be a tradeoff between counter-inflation tools like interest rates and liquidity tools like the Transmission Protection Instrument. He believed both could be used if liquidity problems are targeted and limited, using the Bank of England's recent action during the mini-budget crisis in the UK gilt market.