Some euro zone central banks must be prepared to buy more bonds and others fewer to ensure the smooth transmission of the European Central Bank's monetary policy, ECB policymaker Francois Villeroy de Galhau said on Monday.
FILE PHOTO: Governor of the Bank of France Francois Villeroy de Galhau speaks during a news conference at the G7 finance ministers and central bank governors meeting in Chantilly, near Paris, France, July 18, 2019. REUTERS/Pascal Rossignol
The ECB has mobilised a range of unprecedented measures to mitigate the recession that the euro zone has sunk into due to fallout from the coronavirus outbreak. Under that programme the ECB can target its bond purchases at countries seeing sharper rises in yields like Italy, whose spreads over ultra-safe German bonds blew out during the coronavirus crisis.
Villeroy said in an online speech to France’s Société d’économie politique that in the current circumstances “clinging to the capital keys to determine each country’s purchase amounts would be an uncalled-for constraint that would undermine the very effectiveness of our intervention efforts”.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
An 8-Move, Low-Impact Workout You Can Do AnywhereIf jumping, explosive exercises aren't your thing, try these moves. You'll still feel a major burn.
Lire la suite »
Thai central bank governor Veerathai will not seek 2nd termThailand's central bank governor Veerathai Santiprabhob, whose five-year term ends on Sept. 30, will not apply for a second term because of family reasons, the Bank of Thailand (BOT) said on Monday.
Lire la suite »
European shares rise on recovery hopes, Bayer jumpsEuropean shares rose in thin trading on Monday, as optimism over reopening of countries and signs of more stimulus for the coronavirus-hit euro zone economy helped sentiment.
Lire la suite »
Asian shares tick up, eyes on China-U.S. trade relationsAsian shares started cautiously on Monday as central bank largesse globally boosted sentiment but rising trade tensions between the world's two biggest economies dulled risk appetite.
Lire la suite »
The virus is accelerating dechurching in AmericaThough the process of secularisation has been slower to take hold in America than in other parts of the rich world, it is now well under way
Lire la suite »
Why interest rates are so high in AfricaLast year Uganda’s central bank estimated that half of banks’ interest margins are swallowed by operating costs
Lire la suite »