▷ BVR: ECB should end pandemic bond purchases

27.10.2021 – 10:01

BVR Federal Association of German Volksbanks and Raiffeisenbanks

Berlin (ots)

The Federal Association of German Volksbanks and Raiffeisenbanks (BVR) is calling for an end to the European Central Bank’s (ECB) pandemic emergency purchase program. “The economy in the euro area is likely to have overcome the pandemic-induced economic slump at the beginning of next year. It is only logical if the emergency instrument decided by the ECB then expires at the end of March 2022,” said BVR board member Dr. Andreas Martin.

An analysis of economic development suggests that capacity utilization in the euro area economy will again be slightly above average at the beginning of 2022. The unemployment rate is already moving back to its level before the start of the corona pandemic. In view of the increased risk of inflation in recent months, the ECB should not unduly prolong special monetary policy measures. Martin: “An end to the pandemic-related bond purchases will give the ECB more flexibility if the increased inflationary pressure should turn out to be sustainable.”

The pandemic-induced bond purchase program of the ECB is a massive intervention instrument to enable monetary policy to have additional influence on the bond markets in view of the corona pandemic. The purchase volume currently already amounts to 1,400 billion euros, a considerable volume compared to the asset purchase program, which has been running since 2014, amounting to 3,000 billion euros. In addition to the extremely low key interest rates, the bond purchases are intended to help lower the financing costs of private households and companies and thus provide impetus for higher investment and consumer spending.

The current study by the BVR is available on the Internet at www.bvr.de, Publications, economics available.

Press contact:

Federal Association of German Volksbanks and Raiffeisenbanks (BVR)
Melanie Schmergal, Head of Communication and
Public Relations / Press Officer
Phone: (030) 20 21-13 00, [email protected], www.bvr.de

Original content from: BVR Federal Association of German Volksbanks and Raiffeisenbanks, transmitted by news aktuell


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