Monday, 2 October 2017

Calmer times may call for smaller, more extended ECB bond buys: Praet

2017 10 02T131804Z 1 LYNXNPED9112F RTROPTP 0 ECB POLICY PRAET 1 - Calmer times may call for smaller, more extended ECB bond buys: Praet

2017 10 02T131804Z 1 LYNXNPED9112F RTROPTP 0 ECB POLICY PRAET 1 - Calmer times may call for smaller, more extended ECB bond buys: Praet
European Central Bank Executive Board Member, Peter Praet, speaks during a conference in Sofia, Bulgaria May 24, 2017. REUTERS/Stoyan Nenov

October 2, 2017

FRANKFURT (Reuters) – Investors are better able to digest smaller but more extended bond purchases by the European Central Bank when financial markets are calm, the ECB’s chief economist said on Monday.

“In more normal market conditions … investors may become ‘more patient’, or, in other words, better able to evaluate the stimulus that can be expected to come from a purchase plan that is to be executed over a more extended time interval,” Peter Praet said at an event in London.

The ECB will decide later this month on the extension of its asset purchases with policymakers likely considering a longer extension with smaller monthly purchases, or bigger monthly purchases over a shorter period.

(Reporting By Francesco Canepa; Editing by Balazs Koranyi)

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source https://capitalisthq.com/calmer-times-may-call-for-smaller-more-extended-ecb-bond-buys-praet/

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