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ECB drawing up plans for bond purchases

Thursday, August 02, 2012 - 01:39

Aug. 2 - ECB President Mario Draghi says the central bank will gear up to buy Italian and Spanish bonds on the open market but will only act after euro zone governments have activated bailout funds to do the same. Rough Cut (no reporter narration).

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(SOUNDBITE) (English) ECB PRESIDENT, MARIO DRAGHI, SAYING: "Risk premia that are related to fears of the reversibility of the euro are unacceptable, and they need to be addressed in a fundamental manner. The euro is irreversible." (SOUNDBITE) (English) ECB PRESIDENT, MARIO DRAGHI, SAYING: "The Governing Council, within its mandate to maintain price stability over the medium term and in observance of its independence in determining monetary policy, may undertake outright open market operations of a size adequate to reach its objective." Draghi said after the bank kept euro zone interest rates at 0.75 percent. (SOUNDBITE) (English) ECB PRESIDENT, MARIO DRAGHI, SAYING: "The Governing Council will consider further non-standard monetary policy measures according to what is required to repair monetary policy transmission. In the coming weeks we will design the appropriate modalities for such policy measures." (SOUNDBITE) (English) ECB PRESIDENT, MARIO DRAGHI, SAYING: "There is not yet one country that has asked the EFSF to interevene. So, are you ready to act now? Even if we were ready to act now, there wouldn't be the ground for doing so. What we have expressed now is a guidance. And it's a strong guidance about strong measures that will be completed in their details in the coming weeks."

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ECB drawing up plans for bond purchases

Thursday, August 02, 2012 - 01:39