BRUSSELS (MNI) – The European Central Bank continues to neutralize
the impact of its bond buying programme, European Central Bank President
Jean-Claude Trichet repeated on Monday.
Speaking to the European Parliament’s Economic and Monetary Affairs
Committee, Trichet said: “What we’ve done is neutralise the impact that
this programme is going to have. We have taken out everything that we
have put in.”
He said that last week, the bank had withdrawn 47 billion euros
from the banking system. Today the ECB announced that the level of bond
buys settled as of last Friday reached E51 billion, an amount that will
be drained in a term deposit tender on Tuesday.
“Euro for euro we are acting and reacting,” said Trichet, adding
that “this programme as with all non-standard programmes will only last
for a certain time.”
He said that because of the sterlization, the bond purchase program
does not alter the ECB’s monetary policy stance and represents no
inflation risk.
[TOPICS: M$$EC$,MT$$$$,M$X$$$,M$$CR$,MGX$$$]
