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MNI BRIEF: QT A Supplement, Not Main Tightening Tool-Lagarde

(MNI) Frankfurt

The European Central Bank's approach to quantitative tightening will be “predictable and measured”, ECB President Christine Lagarde said on Thursday, as she highlighted a further move towards normalisation of monetary policy.

Lagarde said the reduction of reinvestments of maturing securities acquired under the Asset Purchase Programme would not be a main tool for monetary tightening, but supplementary to higher rates. Further details on the slower pace of reinvestments form March will be published at 1445GMT.

The February meeting had proven a useful occasion to take stock of recent decisions, Lagarde said, saying this week's bank lending survey shows good transmission of monetary policy. It's not perfect, "but we can tell that there is transmission of those rates already," she said.

MNI London Bureau | +44 203-865-3812 |
MNI London Bureau | +44 203-865-3812 |

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