March 18, 2020 / 4:10 PM / 12 days ago

ECB needs to act on deepening crisis: Rehn

FILE PHOTO: Governor of the Bank of Finland, Olli Rehn attends a Reuters Newsmaker event in London, Britain, May 29, 2019. REUTERS/Hannah McKay/File Photo

FRANKFURT (Reuters) - Financial condition have materially changed since the European Central Bank’s meeting last week and further steps may be necessary to prop up the euro zone economy, Finnish central bank chief Olli Rehn said on Wednesday.

“The situation is much more critical than a week ago and it is therefore necessary to take active steps, particularly to secure corporate finance and the functioning of the banking system as a whole,” Rehn told Finnish newspaper Helsingin Sanomat.

“This could mean expanding the security purchasing program and changing a country’s maximum bond purchase rate,” Rehn a member of the ECB’s rate setting Governing Council said.

The ECB is currently allowed to buy up a third of each country’s debt but is nearing this limit in several places and the limit could curtail its powers to keep borrowing costs in check.

Reporting by Balazs Koranyi; Editing by Francesco Canepa

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below