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Will Buy Bonds Until Markets Stabilise - Ecb's Nowotny

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The European Central Bank will maintain its bond-buying programme until financial markets stabilise, ECB Governing Council member Ewald Nowotny told Japan's Nikkei newspaper in an interview published on Sunday.

On the euro's recent falls against the dollar, Nowotny said that, while volatile exchange rate moves were problematic, he saw the euro's current levels as normal.

The European Central Bank promised extra cash on Thursday to keep euro zone liquidity flush until the end of the year through its controversial government bond buying programme.

The move throws the ECB's strategy for exiting stimulus measures further into reverse, after the central bank was forced to step in to stem a widening sovereign debt crisis a month ago by buying bonds and making extra loans available.

Nowotny, who is also Austrian central bank governor, told the paper that the ECB's bond-buying programme was aimed at correcting distortions in specific markets, and was not a quantitative easing policy aimed at boosting money supply.

He also said the programme was unlikely to fuel inflation or hurt the ECB's independence.

Printy printy to continue but it won't cause inflation and won't boost the money supply.

Still it's all contained and wouldn't it be a fair assumption to say if the ECB is having to intervene massively the market is fooked?

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  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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