ECB's Coeure: Bond-buying effect continues

Wednesday, 12. June 2019 17:08

The European Central Bank's asset purchase program "has remained a considerable source of financial easing" even though the net buying was finished at the end of last year, board member Benoit Coeure said on Wednesday. Speaking in Frankfurt, he cited "increased downside risks to growth" and stressed the bond-buying scheme continues to provide "important accommodation."

"Since our decision to halt net purchases, further employment gains, increasing wages and the underlying strength of domestic demand continue to confirm the Governing Council’s central outlook of gradually rising inflation," the policymaker stated. He stressed external headwinds "have undisputedly accelerated and uncertainty has increased," attributing the shift to "the rising threat of protectionism."

The ECB is "determined" to intervene if a downturn occurs, according to one of the reported candidates for the replacement of President Mario Draghi when his term expires at the end of October. Coeure repeated the rate-setters' stance that all of the tools on hand can be applied.

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