Asset purchase: BOJ is buying approximately $70 billion in bonds a month, vs the Fed who is buying $85 billion. Now ECB is looking to fulfill the inflation mandate.
“ECB Executive Board member Praet on Wednesday raised prospect of central bank starting to buy assets to bring inflation closer to target. Praet told the Wall Street Journal in an interview if inflation veered too far from the ECB’s target, it would take all the necessary measures to fulfill its mandate. “That’s a very clear signal. “The balance-sheet capacity of the central bank can also be used (to fulfill the inflation mandate),” Praet said. “This includes outright purchases that any central bank can do.” (Reuters)