The Governing Council of the ECB held an emergency meeting this Wednesday to discuss the situation in the markets.
Euskaraz irakurri: Europako Banku Zentralak pandemic erositako bonuak malgutasunez berrinbertitzea erabaki du
The European Central Bank (ECB) decided on Wednesday to flexibly reinvest bonds acquired during the pandemic to curb the rise in risk premiumsas stated in a statement.
The Board of Directors took this decision in a emergency meeting to analyze current market conditions after the risk premiums of the peripheral countries in relation to the 10-year German debt skyrocketed.
“Since the gradual process of monetary policy normalization began in December 2021, the Governing Council has committed itself to addressing re-emerging fragmentation risks,” the ECB said in the statement.
In addition, it instructed the relevant committees of the national central banks and the services of the European Central Bank to accelerate the finalization of the draft of “a new anti-fragmentation instrument to be considered by the Governing Council”.
The ECB emphasizes that the pandemic has created problems in the euro area economy that contribute to an uneven transmission of the normalization of its monetary policy across countries.
According to this analysis, the Governing Council has decided that it will apply flexibility by reinvesting delinquent payments” in the debt portfolio acquired by the pandemic, in order to “maintain the functioning of the monetary policy transmission mechanism, which is a prerequisite for the ECB can fulfill its mandate for price stability,” it added in the statement.
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Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
