ECB should now be prepared to tighten policy, says board member

by Dramelin 5:30 AM 0 comments

The European Central Bank (ECB) should be ready to change its monetary policy as inflation data start to meet targets, a member of the bank`s executive board told CNBC on Monday.
Inflation, which is a key factor determining ECB policy, has improved over the last few months but core figures are still below the bank`s target.
However, the latest headline inflation figures ? which is a measure of total inflation and includes commodities like food - for the euro zone reached 2 percent in February, mainly driven by energy prices.
Sabine Lautenschl?ger, member of the ECB`s executive board, said the current lose monetary stance is necessary given current economic data, but added that she`s hopeful that the numbers will improve by the next scheduled meeting in June.
"We should prepare for a change in the policy and as soon as the data is stable and we have a sustainable path towards our objective of price stability then we are well prepared to do (it)," Lautenschl?ger told CNBC.