FRANKFURT (MNI) – The European Central Bank should maintain its
current liquidity framework until the start of next year, ECB Governing
Council member Axel Weber told Bloomberg TV on Thursday.
“For the October operations I’m very strongly of the view that we
should maintain the current allotment mode, full allotment for the
three-month operation,” Weber said said.
“We are moving forward now to a period where for the three-month
operation the end of year effect will become very important. That is
usually surrounded by some uncertainty regarding the liquidity
situation, and in my view it would not be wise to change our operating
procedures, not take into account the upcoming end-of-year tensions,”
the German central bank said by way of explanation.
“As we go forward, I think there are good arguments to wait with
the normalization, which we’ve always done step-by- step, of the tender
procedures until the end of the year, not just covering the end of the
year effect with the three-month operation,” added.
Weber also told Bloomberg that “interest rates are appropriate
given the price outlook.”
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