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ECB Likely to Offset Bond-Buying Under New Anti-Crisis Tool

  • There’s concern market panic could undermine monetary policy
  • Officials want new instrument ready in time for July meeting
The European Central Bank (ECB) headquarters in Frankfurt.

The European Central Bank (ECB) headquarters in Frankfurt.

Photographer: Alex Kraus/Bloomberg
Updated on

Bond-buying under any new anti-crisis tool from the European Central Bank would probably involve selling other securities in its portfolio so purchases don’t upset efforts to curb record inflation, according to people familiar with the matter.

Policy makers are determined to neutralize any interventions in debt markets so they don’t exacerbate upward price pressures, said the people, who asked not to be identified because the discussions are private.