PARIS (Reuters) – The amount of monetary stimulus is not the only question facing the European Central Bank and it also needs to look at how it is transmitted to the economy, ECB policymaker Francois Villeroy de Galhau said on Friday.
The ECB is preparing a new stimulus package to help cushion the impact of the coronavirus pandemic on the euro zone economy, which is expected to be decided next month.
“In the face of prolonged uncertainty, out first objective must be keeping very favourable financing conditions as long as necessary,” Villeroy, who is also head of the french central bank, said in a speech at the ACPR French financial authority.
“To this end, the recalibration of instruments must focus in particular not only on the level of monetary support, but also on the duration, flexibility and efficient targeting, in short, the quality of monetary policy transmission,” he added.
(Reporting by Leigh Thomas; Editing by Kirsten Donovan)
