ECB executive board member Gonzalez-Paramao says the economic recovery in the euro zone will be gradual and it will rely on factors such as stimulus. Departure from current policies cannot be achieved without well-designed, clearly-communicated framework. Discussion of exit strategies should not be taken as a signal of imminent policy actions. When policy is back to normal, the ECB intends to revert to the 1-week refi as its main tool for steering money markets. It is too early to say whether it is time to tighten its key rate or tighten liquidity supply, or both. Any liquidity withdrawal will be gradual, he says.
Long story short: the ECB is set to stay loose for a significant time to come.