Mario Draghi disappointed investors seeking a firm target for how far he’s willing to go to revive the euro-area’s faltering economy.
Fleshing out new plans to boost credit and stave off deflation, the European Central Bank president said officials will start sucking up covered bonds this month and asset-based securities this quarter and continue for at least two years. He shied away from a definitive goal for how much the central bank might buy, saying total stimulus may fall short of the 1 trillion euros ($1.3 trillion) he’d earlier signaled.
Spanish bonds dropped and the euro rose on the lack of a target as the ECB takes its unprecedented step into financial markets. Policy makers meeting in Naples, Italy, left the option of expanding the program to buy government bonds in the toolbox for now.
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