27 julho 2012 11:37
Bundesbank's comments today on the continued resistance to bond purchases, highlight the ECB's division on how to rein in soaring Spanish and Italian borrowing costs. The ECB has bought government bonds on the secondary market. Its Securities Markets Program still exists, although not active. In the past, German central bankers have clashed with counterparts over the issue of bond purchases.
27 julho 2012 11:37
| WSJ: |
| "Germany's central bank remains opposed to further government bond purchases by the European Central Bank, but isn't against using the euro-zone's temporary rescue fund (European Financial Stability Facility) doing so to drive down soaring sovereign borrowing costs, a Bundesbank spokesman said Friday. Germany's central bank regards further bond buys by the ECB as "problematic" and "not the most sensible" instrument for overcoming the debt crisis, in particular because they create false incentives for governments, the spokesman said." |
| source: Bundesbank Maintains Opposition to ECB Bond Buying | WSJ |