ECB 'has no plans to up bond purchases'

20 December 2011

The European Central Bank (ECB) is not planning to conduct an increased round of bond purchases in the near future.

That is according to the body's president Mario Draghi, who has moved to dismiss speculation it may step-up its buying programme in this area in the coming months as a method of easing the ongoing eurozone debt crisis.

Recently, there has been talk among fiscal experts that such action may be a good way of aiding the region's governments in their time of need.

However, Mr Draghi told the Financial Times this is not seen as a viable option by him and his fellow policymakers as it would mean the ECB acting "outside its mandate and legal foundations".

The official noted that conducting such a policy decision could "destroy the credibility of the ECB".

Recently, statistics from the body revealed that banks across the eurozone are becoming increasingly reliant on its funding.

By Claire Archer

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