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Berenberg’s Schmieding Urges ECB Bond-Spread Target, FAZ Says

Holger Schmieding, chief economist at Joh. Berenberg Gossler & Co in London, urged the European Central Bank to set a target for euro-area bond spreads that would trigger unlimited ECB bond-buying in secondary markets, the Frankfurter Allgemeine Zeitung said, citing an interview.

Such a move would help counter the risk of deflation amid a German-led drive for the entire region to cut debt and deficits, Schmieding was quoted as saying in the newspaper today.

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