ECB and BoE move to reassure markets

26 June 2013

A handful of the world's most prominent central bankers have attempted to calm markets that have jumped the gun over the impact of the US Federal Reserve's plan to slow its bond-buying stimulus.

Reuters reports top officials at the European Central Bank (ECB) and the Bank of England (BoE) were most pivotal in trying to reassure those who believe that last week's announcement in the US could lead them to do the same, reducing the prospect of growth.

Before the move, Benoit Coeure of the ECB, said the policy steps the central bank had been brought in to support growth and fight the eurozone crisis and would stay "as long as necessary".

He went on to say the scheme could yet go further, if required.

Speaking in Berlin, ECB president Mario Draghi said: "In terms of monetary policy, price stability is assured, and the overall economic outlook still warrants an accommodative stance, the exit from which by the way is still distant."

By Gary Cooper

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