ECB Villeroy: Must Reduce Bond Buying, Remain Accommodative

By Jack Duffy

     PARIS (MNI) - The European Central Bank must reduce the intensity of its

asset purchases while not shifting from its generous monetary policy stance,

Governing Council member Francois Villeroy de Galhau said Thursday, 

     Speaking in Paris, Villeroy said "we are now faced with a simple

requirement, in line with our mandate to maintain price stability, and the

progress towards our inflation target: we have to reduce the intensity of our

net asset purchases, while maintaining overall a substantially accommodative

monetary policy."

     Villeroy said that while recalibrating its QE bond buying program, "we

should on the one hand exploit the margins of flexibility of the programme and

on the other hand hold in reserve an additional purchasing capacity - if

needed."

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--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: M$E$$$,M$F$$$,M$X$$$,M$$EC$]