BoG Governor Stournaras: ECB to keep easy policy as inflation still far from target

The European Central Bank is still far from its inflation target and will keep an accommodative policy even after the recent uptick in bond yields and inflation, ECB rate setter Yannis Stournaras said in a Bloomberg TV interview on Friday.

“Monetary policy will continue to be accommodating until inflation arrives to a desirable level, which is 2 percent or slightly lower. It’s still a long distance from this target,” Bank of Greece Governor Yannis Stournaras said adding that for the country, the “worst is behind us.”

Asked about reducing the pace of ECB bond purchases, Stournaras said: “It’s far, far too early.”

Source: Bloomberg