2018.01.2820:52:00UTC+00ECB Policymaker Calls for Immediate End of QE Program

The European Central Bank must stop its quantitative easing program as soon as possible, according to ECB Governing Council member Klaas Knot, who stated there is no more reason to extend the program.

Knot, who is also the head of the Dutch Central Bank, said that the program has accomplished realistic expectations of it.

The ECB is gradually moving towards unwinding unprecedented stimulus. At the December policy meeting, officials withheld the prospect of a shift in policy language in the year, and a number of governors have since voiced their inclination towards taking a first step in March. While ECB President Mario Draghi said on Thursday that confidence in a sustained rise in inflation has risen, patience and persistence are still guaranteed as progress so far continues to be subdued.

Knot said that the program will continue to be in place until September, with Draghi's rationale being that the central bank does not have to commit yet to the developments in the following month. While Knot said that they see no need to communicate yet that the QE will be over after September, he said that it might be the direction the central bank will be taking.

Earlier, the ECB stuck by its plan to continue purchasing 30 billion euros of assets per month until at least the end of September, and has reiterated that interest rates will continue to significantly lower beyond that.