Don't miss

Replay


LATEST SHOWS

THE INTERVIEW

Erdogan to rid Turkish institutions of ‘separatist cancer’ after coup attempt

Read more

ENCORE!

The best of summer music festivals in France

Read more

FRANCE IN FOCUS

Going for gold: French athletes train for Rio Olympics

Read more

#TECH 24

Digital beauty

Read more

FOCUS

Women doctors in Pakistan challenge the status quo

Read more

BUSINESS DAILY

Trump hopes to reset America's trade relations

Read more

IN THE PAPERS

'Donald Trump's speech was just another scam'

Read more

IN THE PAPERS

Cazeneuve at the heart of Nice security controversy

Read more

EYE ON AFRICA

South Africa: Prosecutors seek longer sentence for Oscar Pistorius

Read more

Europe

ECB unveils bond-buying plan to boost the eurozone

Text by News Wires

Latest update : 2012-09-07

European Central Bank chief Mario Draghi unveiled a new programme to purchase an unlimited number of eurozone sovereign bonds – while staying within the limits of the bank's policy mandate – at an ECB meeting in Frankfurt on Thursday.

AFP - The European Central Bank unveiled Thursday the details of a new programme to purchase an unlimited amount of the sovereign bonds of eurozone countries, but strictly within the bank's policy mandate.

ECB chief Mario Draghi told a news conference the bank would launch a scheme of "Outright Monetary Transactions or OMTs in secondary markets for sovereign bonds in the euro area."

The programme, which would replace a previous much-contested one called SMP, would cover sovereign bonds with maturities of up to three years and would have strict conditions attached to it, Draghi told a news conference here.

The bank has set no limit to the volume of bonds it will purchase under the new programme, he added.

"As we said a month ago, we need to be in the position to safeguard the monetary policy transmission mechanism in all countries of the euro area."

The OMTs "will enable us to address severe distortions in government bond markets which originate from, in particular, unfounded fears on the part of investors of the reversibility of the euro," Draghi said.

The central bank chief insisted that in launching the new programme, the ECB was acting "strictly within our mandate to maintain price stability over the medium term.

It was acting "independently in determining monetary policy and the euro is irreversible," he said.

"We aim to preserve the singleness of our monetary policy and to ensure the proper transmission of our policy stance to the real economy throughout the area," Draghi explained.
 

Date created : 2012-09-06

  • EUROZONE

    Hollande, Monti stress need for growth in Rome meeting

    Read more

  • EUROPEAN UNION

    Moody’s lowers EU credit rating outlook to ‘negative’

    Read more

  • EUROZONE

    Greece must stay in the eurozone, says Hollande

    Read more

COMMENT(S)