Economics
ECB Open to Launching Draghi’s 2012 Bond-Buying Tool
- No internal pushback expected within Governing Council on OMT
- Governments would first have to activate the EU’s bailout fund
The European Central Bank headquarters building stands at dawn in Frankfurt, Germany.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
European Central Bank policy makers are open to activating their most powerful bond-buying tool if needed to help the region’s coronavirus-hit economy once governments lay the groundwork, according to people familiar with its discussions.
While the Outright Monetary Transactions program was only briefly mentioned at last week’s emergency meeting of the Governing Council, which focused on agreeing a different purchase program, it is clear there would be broad support, the people said. They asked not to be identified because the session was private.