Frankfurt (Germany), Nov 15 (EFE) .- The European Central Bank (ECB) announced today that it will continue to use its policy of future monetary guidance ("forward guidance") after the end of its stimulus program and affirmed that the entity will depend "increasingly" on it in the transition towards monetary normalization.
At a conference on the communication of banks central, the ECB's chief economist, Peter Praet, said that while the end of the debt purchase program is "gradually" approaching, the entity will depend "increasingly" on the "forward" guidance "(its policy of informative advances on its decisions in the medium term) in relation to interest rates.
" Interest rates will finally recover their status as the The main policy instrument and our future orientation will once again have a unique approach, "he said.
Future direction on its decisions is a policy instrument monetary policy that the ECB began to use for the first time in July 2013 to prepare markets for the evolution of interest rates.
When announcing its debt purchase program to stimulate the eurozone economy in January 2015, the entity extended the framework of its "forward guidance" to a dual approach, which combined the orientation on interest rates with the of the terms and the amounts that would be used in the acquisition of bonds.
Praet stressed today that the communication on the horizon in which the debt purchase would end and on the Expectations of changes in interest rates have been "a key component" of the ECB's monetary policy strategy.
The economist pointed out that if the bank had not provided guarantees that interest rates would remain at their current minimum levels until the stimulus program ended, some of the positive effects of this would have were neutralized by the expectations of raising the rates.
"In general, our future orientation has left a clear imprint on the ability of the markets to calibrate our intentions of monetary policy, "stressed Praet.