–Adds Comment On Council Vote
FRANKFURT (MNI) – European Central Bank President Jean-Claude
Trichet made clear Thursday the ECB has mandated purchases of sovereign
bonds in the secondary markets of some peripheral Eurozone countries.
The move had been expected by market participants. As Trichet
launched the press conference it was reported that bond-buying was
underway.
Asked about the bond purchases, Trichet said, “I will not be
surprised that you will see something on the market. I will not exclude
that.”
Asked later to confirm bond buying was underway, Trichet said, to
the amusement of reporters, that he had already pre-announced it.
He stressed that he had never said the central bank’s bond-buying
program was “interrupted” or “dormant” and said the possibility of bond
purchases is discussed at each Council meeting.
The launch of Securities Markets Programme in spring 2010 had
triggered heated debate among Council members and ultimately led to the
resignation of Bundesbank President Axel Weber.
The renewal of interventions after four months of inactivity was
not accepted by all Council members, Trichet revealed: “We were not
unanimous, but over whelming majority, with regard to the operation of
bond purchases.”
[TOPICS: M$$EC$,MT$$$$,M$X$$$,MGX$$$,M$$CR$]
