FXstreet.com (Barcelona) - ECB head Mario Draghi spoke today about the central bank's monetary policy at the opening of the academic year 2012-2013 at the Università Bocconi in Milan. He emphasized the importance of a proper monetary policy transmission in the Eurozone, which means that interest rates established by the central bank should have a “stable relationship” with the cost of bank loans for the private sector.

The president explained that the fragmentation of the Eurozone financial system brought about by the debt crisis “has made difficult the transmission of impulses coming from an accommodative monetary policy through adjustments in interest rates on loans to households and firms by banks.”

That is why the ECB conceived the OMT scheme, which improves the transmission monetary policy as well as functions as a credible tool against a “catastrophe.” Mario Draghi also assured that the scheme would not “lead to a disguised financing of governments”, “compromise the independence of the ECB”, “create excessive risks for Eurozone taxpayers” nor lead to inflation. The president emphasized that even though not activated yet, the OMT's were already having a positive influence by facilitating corporate bond issuance.

Finally, Mario Draghi reminded that “the ECB cannot replace the actions of national governments” which are ultimately responsible for restoring market confidence in the area.