HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » Latest Breaking News (Forum) » Euro rises on report of E...
Introducing Discussionist: A new forum by the creators of DU

Wed Sep 5, 2012, 01:36 PM

Euro rises on report of ECB plan to buy unlimited debt

Source: The Guardian

The euro rose on the foreign exchanges on Wednesday after the Bloomberg financial news service reported that the European Central Bank was preparing to announce plans to buy unlimited quantities of government debt from troubled members of the single currency.

Quoting central bank officials, the agency said the ECB was ready to take action to bring down the interest rates on borrowing paid by countries such as Italy and Spain. Full details of the blueprint are likely to be disclosed by Mario Draghi, the ECB president, on Thursday after a meeting of the central bank's governing council.

According to the Bloomberg, the ECB plans to "sterilise" its bond-buying by removing money from elsewhere in the eurozone economy such as by selling bonds or restricting the money supply. This could ease fears that action to help the weaker members of the 17-nation bloc will lead to an explosion in the money supply.

The ECB is likely to concentrate on buying short-term debt bonds that mature within three years in the hope that it will provide breathing space until longer-term measures are in place.

Read more: http://www.guardian.co.uk/business/2012/sep/05/euro-rises-ecb-unlimited-debt

1 replies, 922 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 1 replies Author Time Post
Reply Euro rises on report of ECB plan to buy unlimited debt (Original post)
alp227 Sep 2012 OP
DeSwiss Sep 2012 #1

Response to alp227 (Original post)

Wed Sep 5, 2012, 02:51 PM

1. ''The European Central Bank....

...was preparing to announce plans to buy ''unlimited quantities'' of government debt from troubled members of the single currency.'' {see figure 1-16 below}


=================================================

LULZ


- K&R

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread