ECB Vice President Luis de Guindos said, “we will discuss about the reduction of our balance sheet,” at December meeting.
“I think this is important in terms of both to reduce the excess liquidity that we see in the marketplace, and secondly as well to alleviate the situation of scarcity of collateral,” he added.
De Guindos also noted, “it’s very difficult to have financial stability without price stability,” adding that “the main risk now for financial stability, for growth, is to have inflation at very high levels.”
