Thursday, October 4, 2012

ECB: Outright monetary trepidation

by Stephanie Flanders

BBC News

October 4, 2012

In his monthly press conference on Thursday, European Central Bank boss Mario Draghi didn't go back on anything he said at the last one. I'm afraid that's about as exciting as it got.

He left most of the gaps in his September statement intact. And he refused to engage in any speculation about Spain - a disappointment for the many investors and analysts who can think of little else.

Mr Draghi cultivated an air of ambiguity on how and when, exactly, the central bank might start to buy the sovereign bonds of other troubled economies. And where he did add details, they did not sound very encouraging to those who are keen for the ECB to stop talking and start buying.

Notably, he said that to qualify for support from the ECB, a country would not just have to request a bailout, but have signed a memorandum of understanding. That usually takes at least a month.


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