Euro Bankers Signal New Action |
| Wall Street Journal - Jul 26, 2012 |
European Central Bank President Mario Draghi sent the strongest signal to date that the ECB is willing to use its power to print money to preserve the euro, giving investors hope that the bank is poised to undertake massive bond purchases in euro-zone bond markets if the region's crisis worsens.
"Within our mandate, the ECB is willing to do whatever it takes to preserve the euro and, believe me, it will be enough," Mr. Draghi said in a speech in London, one week ahead of the ECB's next policy meeting.
Officials have pledged in the past to support the euro, but Mr. Draghi's promise that "it will be enough" was more definitive than anything he has said since becoming ECB president nine months ago.
His comments come after a series of shocks in Spain—including Madrid's need for a €100 billion ($122 billion) bailout of its banks and a request for state bailout aid from the Spanish region of Valencia—pushed the euro zone's fourth-largest country to the brink of needing a full-blown international rescue. Spanish bond yields hit a euro-era high of 7.7% on Wednesday. Anything above 7% is unsustainable for governments in Southern Europe to finance themselves, many analysts say.
Read Full Article from Wall Street Journal
- Posted: 2012-07-26 17:07:11
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