Expansion / The ECB believes that it is not necessary to “consider new initiatives monetary policy.”
The institution does not see a need to reconsider any of the parameters of the new program to buy government debt agreed in late January, as is clear from the minutes of the last monetary policy meeting of the governing council in Nicosia on 4 and 5 March.
Regarding the parameters of purchases of government debt, some members of the governing council reminded the ability to adjust in the future the maximum purchase limit of 25% of an issue of public debt but at the meeting no changes were decided, Efe reported.
The ECB established that can only purchase a maximum of 25% for each type debt issue, ie it can not acquire more than 25% of the sovereign debt of each country.
The ECB began March 9 to buy public and private debt in the euro area amounting to 60,000 million euros a month.
Members of Governing Council of the ECB “generally shared the assessment of significant positive effects of decisions on monetary taken policy on January 22, 2015″ according to the report released today.
The program to buy government debt and private, along with measures approved in June and September, decreases in interest rates and liquidity injections up to four years, have relaxed the conditions of financial markets and the cost of external financing for the private economy, according to the ECB .
He added that the macroeconomic projections March “should not be interpreted as suggesting that recent monetary policy measures were less necessary”.
“On the contrary, they confirmed that the Full implementation of these measures was necessary to fulfill the mandate of the governing council, “which is to achieve an inflation rate of around 2%, added the ECB in the minutes. The ECB governing council continuously assess the effectiveness of the measures.
The ECB also emphasized that there is “a high degree of uncertainty regarding the transmission of unconventional monetary policy measures and a lack of historical precedent “.
Lautenschläger definitely purchase program debt Despite the contents of the minutes, the member of the Executive Board of the ECB, Sabine Lautenschläger, has shown its effect on debt purchase program public and private institution.
“Given the low interest rates in the eurozone, I have my doubts that the economic effects of the program to purchase debt are able to achieve the effect of the desired magnitude,” admits Lautenschläger in an interview magazine ‘Wirtschaftswoche’, reports Europa Press.
Also, also vice president of the Supervisory Board states that it is “fully aware” of the danger that low funding costs reduce pressure on governments to consolidate their public accounts and carry out the necessary structural reforms.
In this regard, adding that an expansionary monetary policy can only provide a “boost” to achieve further growth. “The decisive impulses must it come from economic policies,” he added.
It also emphasizes that pressing interest rates on public debt down, the ‘QE’ increases the incentives for investors move to riskier assets and higher profitability, and to banks to release funding for credit.
However, recalled that the public debt and very low rates recorded before the start of the program and stressed that the US experience shows that the higher the interest, the greater the impact of purchases of government bonds
Information Expansion .
No comments:
Post a Comment