Reuters are out with their 10 cents worth on the earlier news that ECB staffers had presented the governing council with a blue print for QE. Reuters report sources saying that they are looking at a dual approach involving buying government bonds with eurozone risk-sharing and national central banks buying at their own risk.
It all sounds like it’s becoming a complicated mess, which it was always destined to do given they are acting for 18 countries. There’s no mention on how this projected €500bn might be split in the dual buying.
If anything it sounds like a way out for the ECB getting involved in arguments over who and how much they buy if they are looking at a standard amount per country with a clause that if you want more bought then get your central bank to buy it.
“There’s was no fundamental opposition against the option on Wednesday. This could be an option which the Bundesbank could go along with” said the source
