Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Visco Says ECB Should Keep Flexibile Policy in Post-Crisis Era

EconomyOct 18, 2021 05:04
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

(Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.

The European Central Bank should keep some of the flexibility embedded in its pandemic pond-buying program for post-crisis stimulus measures, Governing Council member Ignazio Visco said.

“I think flexibility should remain -- we certainly have to discuss how to adjust our purchase programs,” the Bank of Italy governor said in an interview with Bloomberg Television. “It will help against unexpected shocks, and it will help to avoid fragmentation that may rise again.”

Visco’s comments add to an intensifying debate on the design of the ECB’s post-crisis policies. With consumer prices in the euro area increasing at an annual pace of 3.4% -- far faster than the institution’s 2% goal -- officials face a tricky decision on what next steps to take if pandemic bond buying ends as planned in March. 

Many policy makers including Visco have dismissed the recent spike as largely transitory, but some have started to warn that inflation could become more entrenched if it stokes higher wages. That’s leading to a rift within the Governing Council on how supportive the central bank’s post-Covid policies should be. 

Last week, French colleague Francois Villeroy de Galhau suggested the ECB should consider keeping some of the flexibility of its pandemic bond-buying program as a “contingent option” for future asset purchases. Others, including Belgium’s Pierre Wunsch and Estonia’s Madis Muller, have expressed reluctance on tweaking their regular tools.

Visco said that one option cited by the Financial Times over the weekend -- raising the share of European Union-issued debt that can be bought -- is “something that we may end up doing,” but still needs to be discussed.

©2021 Bloomberg L.P.

 

Visco Says ECB Should Keep Flexibile Policy in Post-Crisis Era
 

Related Articles

Top 5 Things to Watch in Markets in the Week Ahead
Top 5 Things to Watch in Markets in the Week Ahead By Investing.com - Dec 05, 2021

By Noreen Burke Investing.com -- Developments around the Omicron coronavirus variant will continue to be the main driver of market sentiment in the week ahead and this news flow,...

Bitcoin tumbles 9.95% to $48,397.56
Bitcoin tumbles 9.95% to $48,397.56 By Reuters - Dec 04, 2021

(Reuters) - Bitcoin dropped 9.95% to $48,397.56 at 18:02 GMT on Saturday, losing $5,346.13 from its previous close. Bitcoin, the world's biggest and best-known cryptocurrency, is...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email