MNI BRIEF: ECB Could Signal QT Start Date In Dec - De Cos
ECB will discuss QT in December and could announce a start date, Bank of Spain head says.
The European Central Bank could announce a start date for its quantitative tightening program following the December Governing Council meeting when policymakers will discuss balance sheet reduction, Bank of Spain Governor Pablo Hernandez de Cos said in an event in S’Agaro, Spain.
“We might give that information (starting date). It will depend if we see it necessary or not,” de Cos said adding that prudence was need regarding QT, with any early repayments of TLTROs by banks offering useful information on overall liquidity conditions.
“We must be very gradual, observing any repercussions and impacts on the rest of instruments such as TLTROs,” he said.
Regarding the debate between a 50 or 75 basis point rate hike at the December meeting, De Cos said that it will depend on how the economic outlook will develop for the medium term, saying the ECB has made an important step in removing accommodative conditions in the economy. (MNI BRIEF: ECB Dec Projections Similar To Brussels– De Guindos)