This, in turn, could blur the important signals coming otherwise from the resurgence of interbank lending and the associated positive effect on the ECB’s balance sheet. Obviously, the speed of tightening would also depend on the maturity of the assets bought by central banks within the framework of their easing programmes.
Differences in the maturity of assets will ensure that a tightening of the accommodative stance would come in gradual tranches. This is important to avoid any abrupt tightening of credit conditions in the middle of the recovery. At the same time, measures centered on assets that are longer-term in nature and less liquid could pose challenges to the future unwinding of these measures.