ECB's Coeure: A too protracted period of asset purchases may cause financial imbalances

Eren Sengezer FXStreet

Key highlights (via Reuters) from the panel contribution by Benoît Cœuré, Member of the Executive Board of the ECB, at the conference on Rethinking Macroeconomic Policy IV, Washington D.C., 12 October 2017:

Central banks risk causing financial bubbles if they keep buying bonds for too long.
We need to be mindful of risks to financial stability.
A too protracted period of asset purchases, for example, may cause financial imbalances to build up with potentially adverse consequences for price stability.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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