FRANKFURT – European Central Bank policymaker Peter Kazimir on Friday joined a growing camp of rate-setters in favour of ending the ECB’s bond-buying programme, which were designed to boost inflation in the euro zone.
In an interview with Bloomberg, Kazimir said the Asset Purchase Programme (APP) could end in August but this should not be seen as paving the way for an immediate interest rate hike.
“Trading activity weakens in August so that would bea good natural timing for ending the program,” he said.
He was echoing French governor Francois Villeroy de Galhau, who said bond purchases could end between July and September. Board member Isabel Schnabel also saw an argument for ending the APP.
Like Villeroy, Kazimir said the ECB should change its guidance, which currently says its rates will be raised shortly after bond purchases end.
“It’s time to start thinking about separating the two,”Kazimir said.
(Reporting by Francesco Canepa; editing by Jason Neely)
