23 Mar 2014
ECB's Constancio rules out threshold-based guidance
FXStreet (Bali) - European Central Bank Vice President Vitor Constancio, speaking on Saturday at a Fed-sponsored conference, said that the ECB will not adopt threshold-based rate guidance.
Constancio added, quoted by Reuters, that it is not their intent to tie a rate policy to specific economic thresholds. Constancio did not specify any time frame for the future possibility of a rate hike, saying the idea is “even worse” than thresholds.
With regards to further easing policies if needed, Constancio said "the ECB has other tools, including rate cuts, quantitative easing, negative deposit facility rates and targeted liquidity provision operations."
Constancio added, quoted by Reuters, that it is not their intent to tie a rate policy to specific economic thresholds. Constancio did not specify any time frame for the future possibility of a rate hike, saying the idea is “even worse” than thresholds.
With regards to further easing policies if needed, Constancio said "the ECB has other tools, including rate cuts, quantitative easing, negative deposit facility rates and targeted liquidity provision operations."