European Central Bank Governing Council member Francois Villeroy de Galhau called for quantitative easing (QE) reduction, saying that ‘there should be an adequate reduction of our net asset purchases, toward their possible end, while we will keep in a place a substantial degree of accommodation, through all our other instruments.’

The French central bank head said the asset-purchase program ‘is effectively mainly thanks to the stock of bonds that we possess. It is less important how much we buy than how much we have on our books.’

Action Economics said that coming from one of the more dovish central bank members, the comments confirm that the central bank really is heading for the exit, and that monthly purchase levels may be cut back more than initially expected, although whether the ECB is ready to firmly commit to an end date for asset purchases or leave the door open to another follow-up program remains to be seen.


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