ECB to start ABS purchases

The ABS may give the eurozone a marginal boost by keeping the euro’s exchange rate down, putting a lid on borrowing costs for the foreseeable future and generating some wealth effects.

The decision “shall enter into force on the day following its publication on the ECB’s website,” the Frankfurt-based central bank said on Thursday. That’s in line with comments from Executive Board member Yves Mersch, who has said the ECB will start buying ABS this week.

“Unconventional measures might entail the purchase of a variety of assets, one of which is sovereign bonds,” Draghi said in Brussels on Monday in answer to a question during his quarterly testimony to lawmakers at the European Parliament.

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