AIRLINK 195.65 Increased By ▲ 3.81 (1.99%)
BOP 10.17 Increased By ▲ 0.30 (3.04%)
CNERGY 7.88 Increased By ▲ 0.21 (2.74%)
FCCL 38.30 Increased By ▲ 0.44 (1.16%)
FFL 16.07 Increased By ▲ 0.31 (1.97%)
FLYNG 25.41 Increased By ▲ 0.10 (0.4%)
HUBC 130.80 Increased By ▲ 0.63 (0.48%)
HUMNL 13.82 Increased By ▲ 0.23 (1.69%)
KEL 4.66 Decreased By ▼ -0.01 (-0.21%)
KOSM 6.32 Increased By ▲ 0.11 (1.77%)
MLCF 45.05 Increased By ▲ 0.76 (1.72%)
OGDC 209.50 Increased By ▲ 2.63 (1.27%)
PACE 6.67 Increased By ▲ 0.11 (1.68%)
PAEL 41.17 Increased By ▲ 0.62 (1.53%)
PIAHCLA 17.67 Increased By ▲ 0.08 (0.45%)
PIBTL 8.15 Increased By ▲ 0.08 (0.99%)
POWER 9.36 Increased By ▲ 0.12 (1.3%)
PPL 180.75 Increased By ▲ 2.19 (1.23%)
PRL 39.84 Increased By ▲ 0.76 (1.94%)
PTC 24.58 Increased By ▲ 0.44 (1.82%)
SEARL 110.80 Increased By ▲ 2.95 (2.74%)
SILK 0.98 Increased By ▲ 0.01 (1.03%)
SSGC 38.38 Decreased By ▼ -0.73 (-1.87%)
SYM 19.22 Increased By ▲ 0.10 (0.52%)
TELE 8.78 Increased By ▲ 0.18 (2.09%)
TPLP 12.32 Decreased By ▼ -0.05 (-0.4%)
TRG 66.10 Increased By ▲ 0.09 (0.14%)
WAVESAPP 12.45 Decreased By ▼ -0.33 (-2.58%)
WTL 1.69 Decreased By ▼ -0.01 (-0.59%)
YOUW 3.98 Increased By ▲ 0.03 (0.76%)
BR100 12,074 Increased By 143.5 (1.2%)
BR30 36,019 Increased By 359.3 (1.01%)
KSE100 114,843 Increased By 1636.9 (1.45%)
KSE30 36,092 Increased By 526.9 (1.48%)
Business & Finance

ECB's Knot says accelerated bond purchases temporary until growth recovers

  • 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.
  • "We thought it would be wise to frontload part of our purchases, as a counterweight in the coming months", Knot told reporters at a news conference.
Published March 22, 2021

AMSTERDAM: 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, ECB governing council member Klaas Knot said on Monday.

The ECB earlier this month said that it would increase purchases under its 1.85 trillion euro Pandemic Emergency Purchase Programme (PEPP) over the coming months, to prevent a rise in bond yields from derailing economic recovery across the 19 countries that share the euro.

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", Knot told reporters at a news conference.

"But as soon as the improvements that we expect materialise, that reason of course will disappear."

Comments

Comments are closed.