Stournaras states that ECB must keep its money taps fully open

The European Central Bank must keep its money taps fully open, as the eurozone economy is still in the throes of the coronavirus pandemic despite progress in vaccination campaigns, ECB policymaker Yannis Stournaras said.

ECB rate-setters will review the pace of emergency bond purchases at their June 10 meeting against an improved economic backdrop. Growth and inoculation rates are rising in the bloc as Covid-19 cases fall.

However, in an exclusive with Reuters, Stournaras said the recovery remained fragile and, with no evidence to point to an era of high inflation in the foreseeable future, it was too early for the ECB to slow down emergency bond purchases.

“Of course there has been an acceleration in vaccinations, but there are still travel restrictions so I cannot say we are out of the woods yet,” Stournaras, who is also Greece’s central bank governor, said. [Reuters]