FX.co ★ ECB official: QE program must end ‘as soon as possible’

According to ECB Governing Council member Klaas Knot, the European Central Bank has to end its quantitative easing program as soon as possible. The program has done what could be expected of it, he said.

In January, the minutes of the December policy meeting showed that officials held out the prospect of a change in policy language early in the year.

President Mario Draghi said that despite growing confidence in a sustained rise in inflation, patience and persistence are still needed as progress has been subdued so far.

Last week, the ECB said it will stick to its plan to buy 30 billion euros of assets per month until the end of September 2018 and longer, if necessary.

Knot said the uncertainty around the QE program after September could weaken the euro. A 6% increase in the euro since mid-December could affect the economy if it restricts exports and lowers prices.