LONDON, Sept 17 (Reuters) - One of the European Central Bank’s top policymakers poured cold water on calls for a climate change-focused quantitative easing programme on Tuesday, saying such a move would heavily distort the green bond market.
France’s central bank governor Francois Villeroy de Galhau said there had been suggestions for “green quantitative easing” by introducing a bias towards green assets in the ECB’s purchase programme framework.
“Despite its apparent simplicity, this proposal is incomplete and has serious limitations,” Villeroy said in a speech at the World Conference of Banking Institutes.
He stressed that monetary policy targets a macroeconomic objective in the form of inflation and does not single out specific social or sectoral objectives.
“Massive purchases on a relatively shallow pool of green bonds could seriously distort the market,” he added. “I prefer a more ‘integrated’ and holistic approach.” (Reporting by Marc Jones; editing by Huw Jones)