Bloomberg News

ECB’s Nowotny Says Rumor ECB Could Expand Bond-Buying Is Wrong

December 09, 2011

Dec. 9 (Bloomberg) -- European Central Bank Governing Council member Ewald Nowotny said the “recurring rumor” that the ECB could expand its bond-buying significantly is wrong and not covered by European Union laws.

“This is a recurring rumor, but it’s not true,” Nowotny said in a live interview with Austrian television station ORF when asked about reports the ECB could start to buy more euro area government bonds.

“What we have is a small program to address market distortions, but that program is limited in size and duration,” Nowotny said. Programs similar to the bond-buying by the Federal Reserve aren’t covered by EU treaties, he added.

To contact the editor responsible for this story: Boris Groendahl at bgroendahl@bloomberg.net


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