Quantitative easing (QE) has to stop, given that inflation is likely to stay high, the European Central Bank (ECB) policymaker Robert Holzmann said during his speech at an Austrian University on Wednesday.

Key quotes

“Quantitative easing was probably an important addition to the traditional instruments in the view of lower bound on conventional policy but it has the problem of associated side effects.”

“Therefore, I would say, well, for me that already means … certainly letting the PEPP be discontinued at the end of March because it has done its duty and can expire. “

Market reaction

EUR/USD was last seen trading at 1.1331, adding 0.12% on the day.