• Not much of a question on whether we should do something but more the best way to do it
  • If we want to do more we have to reach out to market segments where there is more
  • That doesn’t necessarily mean we would only buy government bonds

The euro has slid on the comments from Coeure in a WSJ piece (which I’ll dig out). There’s not a lot different to what he said yesterday but I’ve highlighted the comment that has done the damage. Of course the most “liquid segment” is sovereign bonds.

Speaking about the euro on the path of ECB policy he said the easing bias will remain for the foreseeable future

“the logical market outcome” of these trends is that the euro’s exchange rate should adjust further. I don’t want to pass a judgment on how much it can adjust or how much it should adjust.”

The rest of the story covers the wait and see approach to the current measures filtering through but he did add that they wouldn’t like to be behind the curve and act too late on the second round effects of lower oil prices transferring into core inflation.

You can read the full article by Brian Blackstone in the WSJ here (gated)