ECB's Lane: Buying stocks, bank bonds not in toolbox

The European Central Bank (ECB) Chief Economist Philip Lane said that the purchases of stocks or bank bonds to combat the coronavirus pandemic impact is not in the central bank’s toolbox, In an interview with the German newspaper Sueddeutsche Zeitung over the weekend.

Key quotes

“The ECB and the Eurosystem have many excellent monetary economists, so everything is considered at some level.”

“But these measures are not part of our current toolbox. Our active toolbox is a combination of our short-term rates, asset purchases, targeted lending and our forward guidance.”

Market reaction

EUR/USD trades on the back foot amid the downbeat market mood, holding above 1.2100 on the first day of a new trading month.

• EUR/USD Price Analysis: Bears in top at monthly resistance