The European Central Bank should review its policy framework that was last time adjusted 15 years ago, Governing Council member Olli Rehn said on Tuesday.
“Both the operating environment and the instruments of monetary policy have changed considerably since the previous review undertaken in 2003,” Rehn, also the governor of Finland’s central bank, said in a statement.
“To ensure the success of monetary policy it would be useful to look at the constituents of the strategy with fresh eyes.”
The ECB agreed last week to end its four-year, 2.6 trillion euro ($3.0 trillion) bond purchase scheme, its biggest experiment yet with unconventional monetary policy.
The scheme, commonly known as quantitative easing, averted deflation but was not as potent or fast as many has expected, raising question about its effectiveness and the bank’s understanding of inflation dynamics.