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22 Sep 2014
ECB's Draghi: ABS market should grow as a result of central bank's intervention
FXStreet (Łódź) - The ECB head continues explaining the significance of the latest package of measures, saying that the September and December TLTRO operations should be assessed together.
• Even though their impact on financial markets is already visible, it's difficult to say what will their impact be on the economy.
• ABS market should grow thanks to ECB's intervention.
• The ABS market is impaired – therefore there is high potential for interventions to change dynamics.
• New package underpins forward guidance and our determination to accomplish expansionary stance over an extended horizon.
• Outright purchases will increase the size of the ECB’s balance sheet, but additional risk exposure will be limited.
• "Regarding senior securities, we would buy only those assets that are eligible for Eurosystem operations."
• Even though their impact on financial markets is already visible, it's difficult to say what will their impact be on the economy.
• ABS market should grow thanks to ECB's intervention.
• The ABS market is impaired – therefore there is high potential for interventions to change dynamics.
• New package underpins forward guidance and our determination to accomplish expansionary stance over an extended horizon.
• Outright purchases will increase the size of the ECB’s balance sheet, but additional risk exposure will be limited.
• "Regarding senior securities, we would buy only those assets that are eligible for Eurosystem operations."