MNI: ECB Lautenschlaeger: Tapering aAnnouncement Come In June

By Chris Mc Innes

     FRANKFURT (MNI) - The June meeting would be the opportune time for the

European Central Bank's Governing Council to announce the end of the Asset

Purchasing Programme by the end of the year, Executive Board Member Sabine

Lautenschlaeger said Tuesday.

     Lautenschlaeger also said a first rate around the middle of 2019 was not

implausible.

     Lautenschlaeger, speaking to a think tank in Frankfurt, stressed that the

economic outlook remained favourable, despite the softening pace of growth seen

this year. Unemployment is falling and wages are rising, she said.

     "So I believe that all we need is a bit of patience. All the conditions for

inflation to kick in are in place."

     "So, June might be the month to decide once and for all to gradually end

net asset purchases by the end of this year."

     " A first hike around the middle of 2019 is not entirely out of the

ballpark."

     She also attempted to downplay the significance of the tapering

announcement, mirroring speeches from some of her colleagues on the governing

council. At the same time, she emphasized the significance of reinvestments of

existing stocks.

     "What I want to say is this: even when we end net purchases, monetary

policy will still be extraordinarily accommodative."

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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