Currency Analyst since 2010

EC: OMT is legal

FXBAZOOKA.com - The European Court of Justice has provided a non-binding opinion that confirms the legality of the European Central Bank's bond-buying scheme, as long as certain conditions are met.

The guidance came from Pedor Cruz Villalon, an advocate general at the court, who added that the ECB should not provide “direct” financial assistance to countries when making bond purchases, should not distort markets and would need to justify the use of such stimulus measures. It also stated that the ECB must have a “broad discretion when framing and implementing the EU's monetary policy.”

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