13-01-15

ECB ready for decision about new government bond purchasing program

ECB Executive Board member Coeure: "In any case, we will be able to take a decision on 22 January."

ECB Executive Board member Benoit Coeure

Discussions in the European Central Bank about a possible large scale program for purchasing government bonds are well advanced, ECB Executive Board member Benoit Coeure told German daily Die Welt. “Last week, we discussed lots of technical details,” Coeure explained. “In any case, we will be able to take a decision on 22 January. Which does not mean that we have, in fact, already reached a decision,” he said. cep expert Bert Van Roosebeke argues that from a legal standpoint government bond purchases would be possible, but that from an economic view quantitative easing (QE) would not make sense. “Yields on government bonds are already so low that it is questionable whether a QE program could bring any added value,” he said.