🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

Eventual end of ECB's bond buys a 'minor issue' - Hansson

Published 01/11/2017, 11:24
Updated 01/11/2017, 11:30
© Reuters.  Eventual end of ECB's bond buys a 'minor issue' - Hansson

TALLINN (Reuters) - The eventual end of the European Central Bank's bond purchase scheme is "a minor issue" since an oversized balance sheet and a commitment to keep interest rates low provides the bulk of accommodation, ECB policymaker Ardo Hansson said on Wednesday.

"How we move in the future ... to zero, is actually a very minor issue in the context where the stock of accumulated purchases is already in the trillions of euros," Hansson told Reuters. "So the question about 10 billion euros (£8.7 billion) there or the precise phasing, I think is not really a material issue."

Hansson added that bond purchases from the private sector will remain substantial next year even when government bond buys are cut, so the share of covered and corporate bond buys could even grow as a portion of all asset purchases.

"I don’t think anyone is talking about ramping up (private sector buys), so it is just maintaining the significant purchases and therefore the share of the private sector element can grow," Hansson said on the sidelines of a news conference.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.