ECB’s Mersch defiant on OMTs
Executive board member says central bank is ‘not limited’ in its actions
Yves Mersch insisted that buying government bonds in the secondary market falls squarely within the mandate of the European Central Bank (ECB), in a speech in Berlin today.
Mersch, a member of the ECB's executive board, pointed to the "high degree of independence" afforded to the central bank, and acknowledged the price for this was an "absolute respect" for its mandate.
The EU treaty, Mersch said, is clear. Purchasing government bonds through the primary market is prohibited – on the grounds it
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