- Analytics
- News and Tools
- Market News
- Accelerated bond purchases temporary until growth recovers - ECB's Knot
Accelerated bond purchases temporary until growth recovers - ECB's Knot
Reuters reports that ECB governing council member Klaas Knot said that the European Central Bank's (ECB) recent decision to accelerate its bond purchases is a temporary move, meant to reduce borrowing costs until growth and inflation in the monetary union pick up.
Knot said that a "major part" of the recent rise in euro zone yields was caused by the improving outlook for growth and inflation in the euro area.
But he described the rest as an unwarranted response to rising yields in the United States, where economic fundamentals have improved faster.
"We thought it would be wise to frontload part of our purchases, as a counterweight in the coming months. But as soon as the improvements that we expect materialise, that reason of course will disappear," Knot told.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
