EN - Press conference by Mario Draghi, #ECB President, following the #ECBGoverningCouncil meeting - FULL version - 22.01.2015 - European Central Bank , Frankfurt, Germany. Mario Draghi: [The Governing Council] decided to launch an expanded asset purchase programme, encompassing the existing purchase programmes for asset-backed securities and covered bonds. Under this expanded programme, the combined monthly purchases of public and private sector securities will amount to €60 billion. (...) In March 2015 the Eurosystem will start to purchase euro-denominated investment-grade securities issued by euro area governments and agencies and European institutions in the secondary market. The purchases of securities issued by euro area governments and agencies will be based on the Eurosystem NCBs’ shares in the ECB’s capital key. (...) Today’s monetary policy decision on additional asset purchases was taken to counter two unfavourable developments. First, inflation dynamics have continued to be weaker than expected. While the sharp fall in oil prices over recent months remains the dominant factor driving current headline inflation, the potential for second-round effects on wage and price-setting has increased. (...) Today’s measures will decisively underpin the firm anchoring of medium to long-term inflation expectations. The sizeable increase in our balance sheet will further ease the monetary policy stance. In particular, financing conditions for firms and households in the euro area will continue to improve. (...) We will buy government debt up to the percentage that will allow a proper market price formation. Therefore we have two limits; the first one is an issuer limit which is 33% and another one is an issue limit which is 25%. In other words, we will not buy more than 25% of each issue and more than 33% of each issuers debt. (...) The measures taken today will be effective, will raise medium-term inflation expectations and basically will address the economic situation in the euro area. There are several channels through which these measures will be effective. (...) What monetary policy can do is to create the basis for growth but for growth to pick up you need investment. For investment you need confidence. For confidence you need structural reforms. The ECB has taken a further measure today but it now up to the governments to implement the structural reforms. And the more they do the more effective will be our monetary policy. (...) We do not have any special rule for Greece and we have basically rules that apply to everybody. There are some conditions before we can buy Greek bonds. As you know there is a weaver which has to remain in place and there has to be a programme. © Frédérick Moulin 2015 - EU2015 - ECB - All rights reserved.
Posted on: Fri, 23 Jan 2015 09:02:20 +0000
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