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Central banks likely to dispense with unconventional tools: ECB's Mersch

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Central banks likely to dispense with unconventional tools: ECB's Mersch

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FRANKFURT (Reuters) – Unconventional monetary policy tools used since the global financial crisis are unlikely to remain necessary as the global economy and central banking normalise, European Central Bank board member Yves Mersch said on Monday.
“Forward guidance, asset purchases, negative nominal interest rates and lending schemes that incentivise banks to increase lending, such as the targeted longer-term refinancing operations, were all designed to combat the challenges of the period,” Mersch said in a speech in Kuala Lumpur.
“But as conditions normalise, it is unlikely that these policies will remain necessary.”

(Reporting by Balazs Koranyi; editing by John Stonestreet)

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