WASHINGTON (MNI) – It is appropriate for the European Central Bank
to consider bringing back one-year refinancing operations with unlimited
allotment in order to address the crisis, ECB Governing Council member
Ewald Nowotny said Friday.
Speaking to journalists during the Annual Meeting of the IMF and
World Bank, Nowotny said, “During the time of the financial crisis we
have had as one of the instruments…in the context of full-allotment
policy…one-year tenders, and I think it might be advisable to think
about reintroducing this approach.”
Asked if he could imagine tenders of longer term than one year, he
replied, “No, I think we do have a kind of established toolkit, and I do
not see a need to expand this. But as this is something that we have had
already, I think one could discuss a reintroduction.”
As to when such a reintroduction might occur, he said merely that
“this is something that we have to discuss within the ECB.”
–Frankfurt bureau tel.: +49-69-720142. Email: dbarwick@marketnews.com
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