ECB Vice President: Future Policy to Focus More on Risks of Monetary Easing

Key Takeaways:ECB Vice President Luis de Guindos says the central bank has learned from past aggressive stimulus policies.The ECB will place greater emphasis on the side effects of loose monetary policy, including bond buying and negative rates.Guindos noted it’s often easier to start a tool than to exit it, highlighting the need for caution.According to Jinshi Data, European Central Bank (ECB) Vice President Luis de Guindos said the ECB will take a more cautious approach to monetary easing moving forward, reflecting on lessons learned from years of money printing, asset purchases, and negative interest rates.Guindos confirmed that the ECB is reviewing its long-term strategy and the full range of policy tools used during recent crises.“All tools used in the past will remain,” he said, “but we’re now more aware of their side effects.”He emphasized that exiting ultra-loose policies can be more difficult than initiating them, underscoring the importance of strategic flexibility and risk awareness.