Attempts to fine-tune ECB policy could create undue volatility, Kazimir says

FRANKFURT (Reuters) -Euro zone inflation risks are balanced and the European Central Bank should not try to fine-tune its policy because adjusting for minor deviations could itself cause market volatility, ECB policymaker Peter Kazimir said on Monday.

The ECB left rates unchanged for the third meeting in a row on Thursday and repeated its mantra that policy was in a “good place”, a hint taken by investors to mean that policy could be unchanged for some time to come.

“We should not try to overengineer our policy and fine-tune inflation dynamics to perfection with small moves,” Kazimir, an outspoken policy hawk, wrote in a blog post. “In trying to be overly precise, the central bank could itself become a source of volatility rather than the pillar of stability our economy needs.”

He argue