ECB's Muller says central bank could do "even more unconventional things" in slump
Muller comments on Saturday
ECB hawk Madis Muller said the central bank could buy other assets if the economic situation in the eurozone deteriorates significantly.
"Right now, we are doing unconventional things," he said Saturday. "You could -- of course -- imagine even more unconventional things if the situation gets really bad."
He wasn't specific but said there "are ways to go beyond the government bonds, and a little bit of corporates and other assets that we are buying now."
The ECB is currently buy 20 billion euros per month in assets, nearly all of it government bonds.
As for the market, I don't think this is a signal. Muller himself said he opposed it, but it's a reminder of what's on the table in a further downturn. Moveover, sentiment is like this is why the euro is increasingly the funding currency of choice and why it will have a hard time rallying even if/when the domestic economy picks up.