The decision of the ECB Governing Council from July to keep interest rates at their current levels at least throgh the summer of 2019, is actually a "packaged policy easing", Wieland said. In his opinion, the ECB needs to turn around and start tightening: "If things go better than expected in terms of forecast, they should start to tighten earlier."
Regarding the reduction of the central bank's balance sheet, Wieland argued that "the Fed came out with a strategy very early". Due to the monetary policy measures, mainly the bond purchase program, the size of the ECB's balance sheet will be 2.7 times higher by the end of 2018 than in 2014. This compares to more than 40 percent of GDP of the euro area.
CNBC: "I think the ECB should tighten earlier: Volker Wieland"
FAZ: "Die Europäische Zentralbank bleibt vorsichtig"