The European Central Bank is buying bonds issued by non-bank corporations in the euro area. The bonds are the latest assets being snapped up by the central bank to combat sluggish growth and kickstart inflation.
Germany's constitutional court has called into question the European Central Bank's asset purchases, saying they might overstep the central bank's powers, referring the case instead to the European Court of Justice.
After the central bank's latest policy meeting, its president Mario Draghi provided only vague hints as to how the ECB would wind down its huge asset purchases. Fast action has been complicated by a much stronger euro.
After previously sparking a mini tantrum in financial markets, the ECB has tried to play a balancing act, emphasizing improved growth while tempering expectations to avoid triggering serious market volatility.
The European Central Bank (ECB) knows it can’t change its loose monetary policy too rapidly, lest it shock markets and banks. But change will have to come soon, maybe as soon as Thursday when governors meet again.
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