ECB boosts bond purchases amid deficit concern

THE EUROPEAN Central Bank (ECB) increased its bond purchases last week as investors remained concerned about governments’ ability to push down budget deficits across the 16-member euro region.

The Frankfurt-based ECB said it completed €1.12 billion of purchases after settling €603 million the previous week.

It began taking seven-day term deposits yesterday to neutralise €73.5 billion of liquidity created by bond purchases since the programme started on May 10th.

ECB president Jean-Claude Trichet has said governments must step up efforts to stem contagion and restore confidence and described the bond programme as “temporary”.

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell