September 13, 2018 / 12:59 PM / 2 months ago

ECB's Draghi says no date set yet for discussing bond reinvestments

FRANKFURT, Sept 13 (Reuters) - European Central Bank policymakers have yet to decide when they will discuss how it will reinvest money accruing from government bonds under its asset purchase programme that mature next year, its head Mario Draghi said on Thursday.

After it stops adding to its 2.6 trillion euro ($3.02 trillion) bond stash at the end of this year, the ECB must reinvest 106 billion euros from government bonds that mature in the first eight months of 2019.

“We haven’t discussed and we haven’t even discussed when we’re going to discuss it. Having said that, we have two meetings before year-end, so we either discuss next time or in December,” Draghi told a news conference after the bank kept policy unchanged as expected.

Investors want to know whether the ECB will deviate from its current, self-imposed rules and further slow purchases in Germany, where it is nearing a self-imposed debt cap.

“What I can confirm — even though we haven’t discussed it I believe the (ECB) Governing Council will be pretty unanimous on that — is that the capital key (setting limits on purchases of each state’s bonds) will remain the guiding principle,” Draghi said.

$1 = 0.8623 euros Reporting By Francesco Canepa; Editing by John Stonestreet

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