Mersch Says Conditional LTRO by ECB Would Be Market Intervention
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European Central Bank Executive Board member Yves Mersch said liquidity injections for banks that require them to lend the cash on risks interfering in the functioning of markets.
“Such a course of action would require that the central bank make normative judgments on which allocation of resources to support and which to reject,” Mersch said during a speech in Frankfurt today. “That in turn represents a far-reaching intervention in market activity.”