FXstreet.com (San Francisco) - The bond market interventions under the OMT program would be limited to ensure the price stability, the ECB Governing Council member and Central Bank of Luxembourg president Yves Mersch said in a speech on Tuesday.
As far as the ECB mandate is to ensure the price stability, "OMTs will be only used if – and to the extent – necessary to ensure price stability," Mersch states.
Mersch also commented that the ECB’s new bond buy plan mustn't turn into monetary financing via. "Secondary bond market interventions must not serve to circumvent the taboo of primary market" purchases.
As far as the ECB mandate is to ensure the price stability, "OMTs will be only used if – and to the extent – necessary to ensure price stability," Mersch states.
Mersch also commented that the ECB’s new bond buy plan mustn't turn into monetary financing via. "Secondary bond market interventions must not serve to circumvent the taboo of primary market" purchases.
