ECB Is Said to Wonder If ABS Program Worthwhile as QE Talks Loom
- Officials may consider dropping ABS purchases as part of taper
- Main objection to axing program is policy signal it would send
Citigroup’s Schulz on ECB Monetary Policy
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European Central Bank policy makers might be open to terminating the institution’s purchases of asset-backed securities when they set the course for stimulus in 2018, according to three euro-area officials familiar with the matter.
Governing Council members generally agree that the program hasn’t revived the ABS market, which was one of its key aims, the officials said, citing informal discussions. They asked not to be named because the matter is confidential. With the holdings also contributing very little to quantitative easing, and requiring a disproportionate amount of time for scrutiny, the strategy is seen as largely redundant, the people said.