ECB's Lane: Main tools of policy adjustments are rates & forward guidance

Speaking to Reuters on the sidelines of the ECB's central bank conference, Irish central bank chief and the ECB's governing council Philip Lane said that It would take a sizable shock to the world economy to change their decision to end net purchases.

Key quotes

• You never want to rule it out but the main tools of adjustment are the forward guidance and interest rates.
• Hanging on to the 2.6 trillion euro pile of bonds that the ECB has bought and reinvesting cash from maturing debt would in itself lower long-term borrowing costs by about 100 basis points.