ECB Policy Maker Says Bank May Not Spend a Cent on Bonds

European Central Bank Governing Council member Panicos Demetriades said the bank might not have to spend a cent on government bonds.

The threat of unlimited buying under the ECB’s new bond-purchase program may mean that “in the end, action is not needed,” Demetriades, who heads the Central Bank of Cyprus, said in an interview in Nicosia yesterday. “No one will speculate against the unlimited firepower of a central bank. This is what stabilizes currencies of countries where investors know that. One wouldn’t gamble against the Federal Reserve, for example.”