Friday, 3 August 2012

First impressions don’t always count

Having outlined at yesterday’s press conference the broad guidance behind the provision of support for bond markets – reproduced in the excerpt below – the intention is now to work out the detail and logistics of the support operation for the bond markets. More on this is likely to be announced by the ECB President at next month’s press conference following the Governing Council’s meeting.

The adherence of governments to their commitments and the fulfilment by the EFSF/ESM of their role are necessary conditions. The Governing Council, within its mandate to maintain price stability over the medium term and in observance of its independence in determining monetary policy, may undertake outright open market operations of a size adequate to reach its objective. In this context, the concerns of private investors about seniority will be addressed. Furthermore, the Governing Council may consider undertaking further non-standard monetary policy measures according to what is required to repair monetary policy transmission. Over the coming weeks, we will design the appropriate modalities for such policy measures. More >

Mike Lenhoff
Chief Strategist

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