Friday, July 27, 2012

Draghi does it two days in a row


Draghi Said to Hold Talks With Weidmann on ECB Bond Purchases

     July 27 (Bloomberg) -- ECB President Mario Draghi will hold talks with Bundesbank President Jens Weidmann in the coming days in an effort to overcome the biggest stumbling block to a new
raft of measures including bond purchases, two central bank officials said
  * Having secured the backing of governments in Spain, France and Germany, Draghi is now seeking to win over ECB policy makers for a multi-pronged approach to reduce bond yields in countries
such as Spain and Italy, the officials said on condition of anonymity because the talks are private
  * Draghi’s proposal involves Europe’s rescue funds buying government bonds on the primary market, flanked by ECB purchases on the secondary market to ensure transmission of its record low interest rates, the officials said
  * Further ECB rate cuts and long-term loans to banks are also up for discussion, one of the officials said

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