01/25/15 17:54 Dow Jones Newswires
“49″ DJ also Dutch central bank chief against ECB bond-buying program From Maarten van Tartwijk AMSTERDAM – The president of the Dutch central bank, Klaas Knot, has also to by the European Central Bank (ECB) decided Anleihekaufproramm voted. He was convinced neither the necessity nor the benefits of this as quantitative easing (QE) known measure, Knot said on Dutch television. Even if it was of the opinion that the QE program had been a success in the US, could not this alleged success transferred to the euro zone, he said. The Governing Council decided on Thursday until at least September 2016 to buy bonds for 60 billion euros a month. On the other hand also Bundesbank President Jens Weidmann had voted. He also believes this measure is unnecessary. “Sure, inflation rates are currently very low, but that’s strongly driven by falling oil prices,” Weidmann told the Welt am Sonntag. “Therefore, there is evidence that the exceptionally low rates of inflation are only a temporary phenomenon.” ECB President Mario Draghi had said during the press conference that the Governing Council had indeed voted only a majority government bond purchases, but he was unanimously of the opinion that they were a “real instrument of monetary policy”. Weidmann said in the interview said: “government bond purchases are not a normal monetary policy instrument, because they are connected in the monetary union with specific disadvantages and risks Therefore, the threshold for their use should be high..” The Governing Council has also decided that are shared only for about 20 percent of purchases the risks of all Member States, but remain the remaining 80 percent of the national central banks. Although this means specifically that the Bundesbank will only buy the safe government bonds, Weidmann voted against. Employees: Hans Bentzien DJG / DJN / brb (END) Dow Jones Newswires January 25, 2015 11:54 ET (16:54 GMT) Copyright (c) 2015 Dow Jones & amp; Company, Inc.
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