Amid global financial market instability, the Central Bank of Europe held an extraordinary board meeting on the 15th and decided to flexibly manage measures to buy government bonds from the market.
It is believed that this is in response to rising yields due to the sale of government bonds from some countries such as Italy and Spain.
The European Central Bank plans to raise interest rates for the first time in 11 years next month, but in response to this policy, government bonds of countries with relatively weak financial bases such as Italy and Spain are sold and yields soar. I am.
In light of these circumstances, the Central Bank of Europe held an extraordinary board meeting on the 15th and decided to flexibly manage measures to purchase government bonds from the market.
It is said that it will utilize the bond purchasing measures introduced as an emergency measure against the new coronavirus, and it seems that it is keeping in mind government bonds such as Italy.
Central banks in each country have indicated that they are rushing to tighten monetary policy amid global inflation, which has led to unstable conditions in financial markets such as falling stock prices and sharply falling government bond prices. ..
The Central Bank of Europe is rushing to normalize monetary policy by raising interest rates in order to curb record inflation, but it requires careful steering in how to proceed with normalization so as not to remind us of the debt crisis that once occurred over Greece. It seems to be.