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ECB chief Mario Draghi asks banks to be careful with new policy models

ECB's asset purchases, aimed at boosting inflation, is set to expire at the end of the year

Reuters  |  Lindau 

Unconventional monetary policy is a success, but gaps in understanding the relatively new tools remain, European Central Bank President Mario Draghi said on Wednesday, cautioning against hasty policy responses to the new reality. Emphasising the need for rigorous research, Draghi said central banks need to carefully weigh their policy steps, giving up their defence of obsolete approaches while acknowledging gaps in their knowledge of how new policies work. Draghi's comments come as the ECB is confronted by an economy where robust growth is accompanied by anaemic inflation. It ...

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First Published: Wed, August 23 2017. 15:39 IST