FRANKFURT (MNI) – The European Central Bank may need to think of
new ways to sterilize money pumped into markets to buy bonds, European
Central Bank Governing Council member Ewald Nowotny told Reuters TV
Tuesday.
“We have of course the possibility for the ECB to take money in
from banks, but maybe we will also construct some other additional
instruments,” he said.
Nevertheless, “this is just a discussion we are leading,” he
reminded. “There is no immediate need because we have the deposit
facility and instruments that are available and are quite substantial.
But it might be a good idea to expand the arsenal,” he added.
On Monday, ECB President Jean-Claude Trichet suggested that term
deposits would be an easy and effective means of withdrawing liquidity.
“This is something which is simple to operate, immediately
available and effective in this respect,” he explained.
–Frankfurt bureau; +49-69-720142; frankfurt@marketnews.com
[TOPICS: M$$CR$,MGX$$$,MT$$$$,M$$EC$,M$X$$$]
