ECB will consider dropping market neutrality – Lagarde
Policy review will consider abandoning principle guiding asset purchases, but Bundesbank’s Weidmann is opposed
The European Central Bank will look at whether its asset purchase programmes should abandon market neutrality, president Christine Lagarde said on October 14.
In a bid to foster the transition towards a greener economic model, the ECB will analyse these modifications during the strategy review of its monetary policy framework.
“In the face of what I call market failures, we have to ask ourselves whether market neutrality should be the actual principle that drives our monetary policy portfolio
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