FRANKFURT (MNI) – The European Central Bank said today it would
maintain its current approach of exiting in a gradual way from
non-standard measures and noted that this has been well received by the
financial markets.
“Given the continued uncertainty surrounding future developments in
the euro area economy, gradualism remains an essential element of the
phasing-out of the ECB’s non-standard operational measures,” the ECB
said in its latest monthly bulletin published today.
Looking back, “the announcements made in relation to the
phasing-out of non-standard measures appear to have been well received
by the markets, without any major impact,” the central bank observed.
“The markets’ reaction suggests that both in December 2009 and in
March 2010 the decisions taken by the Governing Council were perceived
to be an appropriate response in line with financial and economic
developments,” it added.
In December 2009, the ECB had announced that it would end its
ultra-long 12-month refi operation that month and said that the last
six-month operation would be conducted in March 2010.
In March, the ECB then decided to return to variable rate tender
procedures in its regular three-month operations at the end of April
2010 but said it would continue to conduct its main weekly refinancing
and special-term refinancing operations at fixed-rate and
full-allotment.
–Frankfurt bureau: +49-69-720 142, email: jtreeck@marketnews.com
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