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ECB won’t hit bond buying limits for ‘extended period of time’: Lane

ecb wont hit bond buying limits for extended period of time lane 816x445 - ECB won’t hit bond buying limits for ‘extended period of time’: Lane

LONDON — The European Central Bank’s (ECB) decision to buy €20 billion of bonds a month in its restarted stimulus program should allow it to run for an “extended period of time” before reaching self-imposed limits, the central bank’s chief economist said on Monday.

The ECB has put limits on its bond buying to ensure it does not own too large a share of a country’s debt or individual bonds.

“Twenty billion (a month) doesn’t cause an issue with the limits for an extended period of time,” Philip Lane said at an event hosted by Bloomberg on Monday.

He added the bank’s policy makers could also “revisit” its limits if they “interfered with the delivery of monetary policy.” — Reuters

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