ECB's Mersch: Could trim asset purchasing program if inflation picks up earlier

cep economist Bert Van Roosebeke says Mersch's announcement can contribute to keeping inflation expectations anchored

The European Central Bank would be free to trim its asset purchase program if inflation in the eurozone picked up faster than expected, ECB Executive Board member Yves Mersch told German business daily Boersen-Zeitung. "If we were to see that this process brings us to our goal earlier, then we are naturally not so tied to our decisions that we could not adjust things," Mersch was quoted by the paper. cep economist Bert Van Roosebeke welcomes Mersch’s announcement that the ECB is prepared to end its asset purchase program sooner than announced if its goals are achieved before time. “Current inflation is less important, however, than inflation expectations,” Van Roosebeke explained. “Mersch’s remarks can contribute to preventing that inflation expectations will be unanchored.”