Gibran WATFE, 4 December 2015
Yesterday, the ECB announced an extension of its quantitative easing (QE) programme that was started in March this year. Apart from extending QE for at least six months to March 2017, Mr. Draghi, the President of the ECB, announced a widened scope of the programme. Only certain types of assets are allowed to be bought as part of the QE programme. This included, so far, sovereign and supranational bonds, as well as asset-backed securities and covered bonds. Yesterday, the list of eligible assets was extended to regional and local government bonds. Why did the ECB do this?
Gibran Watfe, 14 September 2015
It was an unusual Monday morning on May 10th, 2010 in Frankfurt. During the weekend, the heads of state, the president of the European Commission and the president of the European Central Bank were hastily looking for a solution to the imminent euro crisis, before markets would open on Monday morning. It must have been a stressful morning for the ECB staff in DG Market Operations, because it was the day when the ECB announced that it would buy large amounts of government bonds from troubled Eurozone countries in the framework of the Securities Markets Programme. Continue reading