FILE PHOTO: European Central Financial institution policymaker and Austrian Nationwide Financial institution (OeNB) Governor Robert Holzmann attends a information convention in Vienna, Austria December 2, 2019. REUTERS/Leonhard Foeger
VIENNA (Reuters) – “By no means say by no means” on the European Central Financial institution someday shopping for shares relatively than authorities or company bonds, however it has not mentioned the thought but, ECB Governing Council member Robert Holzmann stated in feedback printed on Sunday.
The ECB on Thursday introduced a bigger-than-expected enlargement of its stimulus bundle to prop up an economic system plunged by the coronavirus pandemic into its worst recession since World Battle Two.
Holzmann took over as head of the Austrian Nationwide Financial institution simply final yr however has already been outspoken on numerous points, calling for the ECB to decrease its often-undershot inflation goal and warning in opposition to adverse charges. He additionally says he initially steered that Thursday’s choice be postpone.
“By no means say by no means. If the necessity is there, this dialogue will certainly need to happen. However at present that dialogue doesn’t exist,” Holzmann informed newspaper Die Presse when requested if the ECB might begin shopping for shares.
On reducing the inflation goal from slightly below 2%, Holzmann stated he might nonetheless change his stance in a dialogue that the ECB has pushed again due to the pandemic.
“Whether it is tough to get from 1.5% to 1.9%, then in a time of low inflation expectations one may also set oneself a special goal, though I actually haven’t but fashioned a remaining opinion right here,” Holzmann stated.
“The elemental dialogue on ECB technique has been postponed due to the disaster and must be taken up once more as of the summer season,” he added.
ECB President Christine Lagarde has made a higher deal with local weather change a precedence, however Holzmann urged warning.
“There are ideas about changing into greener. One should, nonetheless, be very cautious as a result of with these devices the market is usually nonetheless very small and illiquid,” he stated, apparently referring to inexperienced bonds.
Reporting by Francois Murphy; enhancing by Jason Neely