December 19, 2018 / 10:33 AM / 6 months ago

ECB should have ended corporate bond buys - Nowotny

FRANKFURT, Dec 19 (Reuters) - The European Central Bank should have phased out its corporate bond purchases at the end of the year because of a large risk it is distorting the market, Governing Council member Ewald Nowotny told German newspaper Handelsblatt.

The ECB is ending its 2.6 trillion euro ($3 trillion) bond purchase scheme this month but plans to reinvest the cash from maturing bonds for year so come.

“I would have preferred to let the purchase of corporate bonds expire and buy more government bonds instead,” Nowotny, Austria’s central bank chief, was quoted on Wednesday as saying. ($1 = 0.8773 euros) (Reporting by Balazs Koranyi; Editing by Hugh Lawson)

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