It looks like the legal eagles at the European Central Bank have found a solution to limits on more bond baying stimulus.
Its thought the ECB has little room for buying more government debt, due to a self-imposed ban on owning more than a third of each country's debt (the 'issuer limit').
But, reports Reuters (citing two unnamed sources):
- the ban may be circumvented by stripping the central bank of voting rights that comes with owning the debt
- a "disenfranchisement" clause
Link here for (not much) more
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You know the old saying, where there's a will there's a way. With eurozone growth softening and inflation targets receding this might be jus he ticket for more and MOAR QE.
