ECB's Visco (Italy) announces support for QE; says QE is now a "standard" tool for central banks - press interview
- "Sovereign bank purchases are the most effective instrument in the present situation"
- "This is a standard tool for monetary policy. We only call it unconventional because it has not been used in Europe so far"- We need to delivery more policy action, otherwise bond yields will rise again.
- "If individual central banks buy sovereign bonds at their own risk, financing conditions in Europe will diverge even further." The ECB and euro zone national central banks should carry the risk of QE together, national central banks should not be forced to carry the risk alone.
- Corporate bond buying would not be sufficient as that market is relatively small, and large firms already have good access to financing.