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Markets

Time near to stop ECB bond buys

WASHINGTON : The time is coming for the European Central Bank to stop buying government bonds, Bundesbank board member J
Published September 24, 2011

 WASHINGTON: The time is coming for the European Central Bank to stop buying government bonds, Bundesbank board member Joachim Nagel said on Saturday.

Nagel said the ECB's purchases were meant to be a temporary tool to smooth the period until the euro zone's bailout fund was armed with the power to buy bonds and lend to governments.

"I think the time is coming for this (ECB bond buying) to stop," he said during a panel discussion organised by DZ Bank, adding it was also very difficult for the purchases to target certain bond spread levels.

 

Copyright Reuters, 2011

 

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