- economy still weak and fragile
Text of the ECB vice-president’s speech in FFT hitting the wires
On ABS:
- not aiming to buy ABS/covered bonds mostly from banks, but purchases can also support banks on capital side
- amounts we will buy will be lower than the theoretical amount
- around EUR 400 bln of ABS stock qualifies as purchasable assets for new ECB programme
- stock of covered bonds that meets our requirement is about
- ECB ready to steer balance sheet towards ” significantly higher levels” to ease monetary policy stance
- new policy measures mark a new phase in ECB approach
Let’s just hope that this approach succeeds eh?
EURUSD still 1.2649 as crosses retreat from highs
Constancio having every reason to look glum
