ECB officials suggest dropping market neutrality
Isabel Schnabel and Frank Elderson say climate change requires new approach to bond purchases
European Central Bank board members Isabel Schnabel and Frank Elderson have argued that the ECB should go beyond market neutrality in its corporate bond purchases.
In a podcast published by the bank on May 12, Schnabel and Elderson acknowledged there are constraints to central banks pursuing green objectives, both for legal and monetary policy reasons.
The ECB carries out major asset purchases following the market neutrality principle. This means its asset purchases follow the same rates of
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