Economics
ECB’s Kazaks Backs Longer Bond-Buying in Stimulus Boost
- Latvian governor would support 12-month PEPP extension
- Ultra-cheap loans could be made longer, more targeted, he says
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European Central Bank policy maker Martins Kazaks said an expansion of the institution’s emergency bond-buying program by 500 billion euros ($603 billion) would be “reasonable” and he’s ready to support an extension until mid 2022.
The resurgence of the coronavirus pandemic in the euro area and the likely negative impact on economic growth next year mean that the ECB needs to continue to provide support, the governor of Latvia’s central bank said in an interview from Riga. Officials are set to decide on how to boost stimulus on Dec. 10.