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Irish Fin Min: ECB Has No Choice But To Buy Troubled Euro-Zone Bonds
DUBLIN -(Dow Jones)- The European Central Bank has no choice but to buy the bonds of troubled euro-zone nations on secondary markets after the renewed turmoil sparked by Greece΄s decision to hold a referendum, Irish Finance Minister Michael Noonan said Wednesday.
The minister also told Irish broadcaster RTE Radio that he expects the ECB to start cutting interest rates in the next few months and hopes the central bank will have lowered rates by three quarters of percentage point through early next year. "We are about three quarter of a percent out of line, I think, and I hope that would come through between now and Easter," Noonan said.
The ECB needed to buy Italian bonds and those of other troubled euro-zone nations because the "firewall" agreed by European Union leaders last week was not yet in place.
"They need to go into the market and say we have a wall of money here and no matter how much speculation there is we are going to keep buying
Italian bonds and any other euro [euro-zone] bonds that are threatened," he said.
"There is now only one back stop now and that is the European Central Bank," he added.
DUBLIN -(Dow Jones)- The European Central Bank has no choice but to buy the bonds of troubled euro-zone nations on secondary markets after the renewed turmoil sparked by Greece΄s decision to hold a referendum, Irish Finance Minister Michael Noonan said Wednesday.
The minister also told Irish broadcaster RTE Radio that he expects the ECB to start cutting interest rates in the next few months and hopes the central bank will have lowered rates by three quarters of percentage point through early next year. "We are about three quarter of a percent out of line, I think, and I hope that would come through between now and Easter," Noonan said.
The ECB needed to buy Italian bonds and those of other troubled euro-zone nations because the "firewall" agreed by European Union leaders last week was not yet in place.
"They need to go into the market and say we have a wall of money here and no matter how much speculation there is we are going to keep buying
Italian bonds and any other euro [euro-zone] bonds that are threatened," he said.
"There is now only one back stop now and that is the European Central Bank," he added.