FRANKFURT (MNI) – The Bundesbank in its Monthly Report released
Monday described the six-month tender conducted by the European Central
Bank on August 9 as “one-off”.
The German central bank observed that “growing uncertainty on the
financial markets halted… [the] temporary normalization of the money
market in mid-June.”
To counter fresh tensions, the ECB Governing Council decided to
“conduct a one-off supplementary longer-term refinancing operation at
the beginning of August to provide liquidity for approximately six
months,” the report said.
Comments reflect those by Executive Board member Juergen Stark, who
hinted last week that there may be no additional six-month tenders to
follow.
–Frankfurt bureau tel.: +49-69-720142. Email: jtreeck@marketnews.com
[TOPICS: MT$$$$,M$$CR$,MGX$$$,M$$EC$,M$G$$$]
