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Key snips from a BBG interview with ECB.........>

ECB: Key snips from a BBG interview with ECB Governing Council member de Cos.
- "Deflationary risks have increased and that's one of the reasons the European
Central Bank is taking the action it is taking -- to ensure that risk doesn't
materialize... When the uncertainty is very high -- for example, when there is
the risk of low inflation or even deflation -- the monetary policy response has
to be even more forceful and even faster. It didn't make any sense to hesitate
until the last minute about when you're going to extend and by how much. The
sooner, the better."
- re: PEPP. The issue of market fragmentation "is still present but it has more
or less stabilized, precisely as a consequence of this program."
- "The capital key is a benchmark that's there but it's not a constraint in the
short run," he said. "Now, what's important, is that we are going to continue
exercising the full flexibility of the program without considering the capital
key as a restriction."
- Didn't discuss buying bonds that fall below an investment grade rating on
Thursday, doesn't mean the GC won't discuss that in future.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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