ECB’s Coeure Says QE Will Work Due to Size

The European Central Bank decided to embark in a large program of asset purchases because of deteriorating expectations on inflation over a number of years, ECB Executive Board Member Benoit Coeure said on Thursday.

Speaking at an event here, Mr Coeure said he is confident the recently launched, so-called quantitative easing by the ECB will succeed. “It will work because it’s big,” he said.

But the central bank official reiterated  the ECB cannot do everything to fix the euro-zone’s sluggish economy. Governments have to do their part with structural reforms, a message some members of central bank’s board have stressed.

Mr. Coeure added that the ECB’s decision on the purchases was vindicated by general comments noting that “the ECB had done what it had to do,” according to its mandate. The ECB has a mandate to keep the euro-zone inflation rate close to, but below 2%.

The bank recently decided to buy 60 billion euros ($68 billion) of government bonds and other assets each month to inject liquidity in the euro-zone system and rekindle economic growth.

via WSJ

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.