The European Central Financial institution (ECB) Governing Council member Olli Rehn dismissed yield curve management as a software to reinforce the financing circumstances within the euro space whereas talking in an interview on Finland’s YLE TV1.
Key quotes (through Bloomberg)
Yield curve management “can be a slightly mechanical method” to the query of financing circumstances, and “not wise” given the euro space has at the least 19 totally different yield curves.
“The ECB has determined to evaluate how you can outline “favorable” financing circumstances and what’s one of the best ways to find out how these circumstances develop.”
“We’d like sure indicators” to look at “how you can retain favorable financing circumstances, permitting lending to households and firms to perform effectively.”
“There ought to be no automation because it’s higher to depart sufficient room for frequent sense and consideration. In that sense financial coverage is as a lot an artwork as it’s a science.”
Earlier this week, Bloomberg reported, citing sources, the ECB is actively managing bond yield spreads between the strongest and weakest economies of the bloc. The central financial institution, nonetheless, doesn’t name it yield curve management.