top ecb official sceptical about bond purchases
Last Updated : GMT 23:05:31
Arab Today, arab today
Arab Today, arab today

Top ECB official sceptical about bond purchases

Arab Today, arab today

Arab Today, arab today Top ECB official sceptical about bond purchases

The ECB launched a programme
Frankfurt - AFP

One of the members of the European Central Bank's executive board, Sabine Lautenschlaeger, expressed doubt Thursday that the ECB's controversial bond purchase programme will have the desired effect.
"Given the current low level of interest rates in the eurozone, I have doubts whether the economic effects of the purchase programme will reach the desired magnitude," Lautenschlaeger told the weekly magazine WirtschaftsWoche in an interview.
The ECB launched a programme of so-called quantitative easing (QE) -- or the wide-scale purchase of sovereign bonds -- at the beginning of March in order to drive inflation higher in the 19 countries that share the euro and help kick-start economic recovery.
Under the programme, the ECB aims to buy 1.14 trillion euros ($1.2 trillion) worth of bonds between now and September 2016 at a rate of 60 billion euros per month.
"Experience in the United States shows that sovereign bond purchases are more effective the higher yields are," Lautenschlaeger said.
She warned that low interest rates could lead to the formation of asset price bubbles.
"When interest rates are low, the danger increases of risky investment behaviour, and that can easily lead to overheating or to price bubbles in other asset classes," she argued.
In addition, low interests took the pressure off governments to push through economic reforms and get their finances in order.
Before joining the ECB's executive board, which is responsible for the day-to-day running of the bank, Lautenschlaeger was vice president of the German central bank or Bundesbank.
And her scepticism towards the QE programme is shared by Bundesbank chief Jens Weidmann.
As of March 27, the ECB had acquired 41.02 billion euros of sovereign bonds under the programme, according to data published on the ECB website.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

top ecb official sceptical about bond purchases top ecb official sceptical about bond purchases

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

top ecb official sceptical about bond purchases top ecb official sceptical about bond purchases

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Air China suspends flights to North Korea

GMT 10:39 2017 Thursday ,23 November

Air China suspends flights to North Korea
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Syria opposition meets in Riyadh

GMT 06:23 2017 Thursday ,23 November

Syria opposition meets in Riyadh
Arab Today, arab today Jordanian journalist happy of her career

GMT 17:37 2017 Thursday ,23 November

Jordanian journalist happy of her career
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today Srebrenica women cry tears of joy

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Honda recalls 800,000 minivans

GMT 11:43 2017 Wednesday ,22 November

Honda recalls 800,000 minivans
Arab Today, arab today Abeer Sabry reveals reason of “The Flood” success

GMT 08:03 2017 Tuesday ,21 November

Abeer Sabry reveals reason of “The Flood” success
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 10:43 2017 Wednesday ,22 November

Cigar-shaped asteroid came

GMT 09:45 2017 Tuesday ,21 November

Visit Jamaica for more than just sun

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday