Low inflation in view: ECB relies on “unconventional” – n-tv.de NEWS

Low inflation in view: ECB relies on "unconventional" – n-tv.de NEWS

Economy
 

 Monday, September 22, 2014

 
 
 

 
 The prevailing for some time in the euro zone inflation is low the ECB an eyesore. However, they have not get the problem sufficiently under control. Therefore ECB President Draghi is already thinking ahead.
 

 

The European Central Bank (ECB) is ready to take advantage of further unconventional monetary policy measures according to its President Mario Draghi as needed. “We are willing to use more unconventional instruments within our mandate and – should this be necessary – to change the size and / or composition of our unconventional interventions to combat inflation to lower the risks of a lengthy period,” Draghi said at a hearing before the Economic and Monetary Committee of the European Parliament.

The ECB had decided, inter alia, new injections of money for the banks and the massive hard purchase of loan securitisations and covered bonds in June and early September. This last week the bank demand was surprisingly low after the first tranche of cheap ECB money. Some economists see the central bank now under pressure, optionally nachzulegen with other measures.

More on the topic
 
 
 

Draghi said the demand of the institutions was in line with expectations. This first injection of cash and another in December should not be considered in isolation, but should be assessed in combination. According to a Reuters survey expect experts in December with a higher banks’ demand for the fresh ECB money. Last Thursday, 255 institutions had only ordered 82.6 billion euros at the ECB. The first two of the eight liquidity shares in September and December can be up to 400 billion euros difficult earlier statements Draghi According.

The ECB wants the beginning of October to announce the technical details of its asset purchasing program for loan securitisations and covered bonds. Draghi was optimistic that since the financial crisis relatively untapped market can be revived for securitization under the impetus of the central bank before the deputies. He believes that the market for asset-backed securities (ABS), such as credit securitizations are called by experts, will then grow again. The ECB wants to relieve with the purchase of ABS banks of loans, so that they can assign new loans. In this way, ho

  Source: n-tv.de