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Yield Curve Control Nonsensical for Euro Area, ECB’s Rehn Says

The European Central Bank headquarters in Frankfurt. 

The European Central Bank headquarters in Frankfurt. 

Photographer: Alex Kraus/Bloomberg

There are better ways than yield curve control to achieve favorable financing conditions in the euro area, given the differences between its 19 member states, according to European Central Bank Governing Council member Olli Rehn.

Yield curve control, proposed as one option to consider by, among others, Spanish central bank Governor Pablo Hernandez de Cos, “would be a rather mechanical approach” to the question of financing conditions, and “not sensible” given the euro area has at least 19 different yield curves, Rehn said in an interview on Finland’s YLE TV1.