The European Central Bank is not too concerned about the recent surge in global market volatility, as the correction was streamlined and its influence was mostly limited to stocks. This was stated by ECB member Benoit Köre.
Speaking to reporters in Skopje (Macedonia), Köre said that volatility is a fact of life and the ECB should have accepted it, although he monitored whether there is a wider impact on financial conditions or the real economy.
“Market volatility is a fact of life, we must live with it,” Köre noted. “So far, we see that the correction has been streamlined in the markets, and the impact on the eurozone has been mainly associated with the stock market."
Köre reiterated the ECB's statement that interest rates would not increase for a long time after the completion of the asset purchase program, and representatives of the central bank unanimously agreed to this sequence.
“We also stated that our rhetoric regarding monetary policy will change, and we said that this will be discussed at the beginning of 2018,” added the ECB board member. “We have not discussed this yet.”
At the end of January, the ECB reaffirmed that it would make monthly asset purchases of € 30 billion until the end of September 2018 "or longer if necessary."
At a press conference following a meeting of the Board of Governors, ECB President Mario Draghi said that the eurozone still needs serious monetary stimulus.
Economists surveyed by Reuters expect the ECB's € 2.55 trillion bond purchase program to end by the end of December after a short folding period.
It is also predicted that the ECB will very carefully raise rates six months after the cessation of bond purchases.