ECB will need more specific policy guidance: Praet

FRANKFURT: The European Central Bank will need to make its policy guidance more specific as the current formulation will lose its effectiveness over time, ECB Chief Economist Peter Praet said on Wednesday.

"With the passage of time, the indication that policy rates will remain at their present levels well past the end of net asset purchases will gradually cease to provide sufficient guidance about the likely evolution of the monetary policy stance," Praet said.

"So, our forward guidance on the path of our policy rates will have to be further specified and calibrated as appropriate for inflation to remain on the sustained adjustment path towards levels below, but close to, 2 percent over the medium term," Praet told a conference.