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"I think there's a danger of erring on the other side," the
ECB's Ardo Hansson said. "And if you wait too long, you're going
to have to play catch-up, and that can be much more disruptive."
"With greater confidence in the outlook for the real economy
there is some scope for a prudent but obvious recalibration of
policies," Hansson said at a banking conference hosted by UBS.
"The world looks better to us," said Hansson, Estonia's ECB
member, who is considered one of its more hawkish ratesetters.
The euro zone economy was enjoying "strong" growth, he said, and
the ECB feels "more and more confident" that inflation will
reach desired levels.
The ECB's array of monetary policy tools should not be limited
to asset purchases, Hansson said.
"Monetary policy is not only about asset purchases. We can't
make the stance of policy synonymous with one important but
still limited part of the programme," he said.
"One of my colleagues always likes to say monetary policy is not
a solo, it's a quartet: you have the asset purchases, the
accumulated stock of purchases, the re-investment policy and
forward guidance."
Late last month, the ECB laid out plans to cut its stimulus
programme from the start of next year to 30 billion euros a
month from 60 billion. That arrangement will run at least until
September.
(Reporting by Helen Reid, editing by Larry King)
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