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ECB may discuss QE changes but decision could be delayed until December - Reuters

 

European Central Bank may discuss technical changes to QE program next week, including temporary deviation from the capital key and buy some bonds with yields below the deposit rate, but the decision may be delayed until December when the bank will also decide whether to extend the scheme beyond March, Reuters reported.

From Reuters:

“Compromise proposals could include relaxing, on a temporary and partial basis, a rule forcing the ECB to buy debt in proportion to the size of each euro zone economy, the sources familiar with the discussion added.

That could potentially reduce the ECB's purchase of German debt, risking renewed conflict with Berlin, which has already argued that the ECB is subsidizing indebted countries.

Other proposals may include buying a limited amount of bonds yielding less than the deposit rate, which the ECB currently rules out, and buying a bigger share of any individual bond issue, the sources added.”

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