–Adds Detail To Version Transmitted At 0902 GMT
FRANKFURT (MNI) – The European Central Bank should keep its full
allotment mode into next year, ECB Governing Council member Axel Weber
told Bloomberg TV on Thursday.
“For the October operations I’m very strongly of the view that we
should maintain the current allotment mode, full allotment for the
three-month operation,” Weber said said.
“We are moving forward now to a period where for the three-month
operation the end of year effect will become very important. That is
usually surrounded by some uncertainty regarding the liquidity
situation, and in my view it would not be wise to change our operating
procedures, not take into account the upcoming end-of-year tensions,”
the German central bank said by way of explanation.
“As we go forward, I think there are good arguments to wait with
the normalization … not just covering the end of the year effect with
the three-month operation,” added.
Weber also told Bloomberg that “interest rates are appropriate
given the price outlook.”
After harshly criticizing the ECB’s government bond purchase
program upon its introduction, Weber said that in his view “it is pretty
clear that purchases of government bonds has played a minor role only”
that volumes should remain limited ahead.
“The focus now looking forward is let’s keep this program focused
on what it can do, take out excessive fluctuations, help markets find a
new pricing equilibrium. I think it’s doing that even with very limited
amounts.”
–Frankfurt Newsroom +49 69 72 01 42: email: fftmail@marketnews.com–
[TOPICS: M$G$$$,M$$FI$,MFXBO$,MGX$$$]