ECB’s Villeroy: QE taper decision is justified by confidence inflation will gradually converge towards 2%

ECB Governing Council member and Bank of Franc Head Villeroy is out on the wires now, via Reuters, justifying yesterday’s QE taper decision.

Key Points:

Decision to reduce bond buys is justified by confidence inflation will gradually converge towards ECB’s 2% target

Must not focus excessively on bond buys, which are part of tools available to ECB

ECB to use all tools in progressive normalization

They have made "essential step" to end QE