Bank of Italy says ECB
considering extending QE, not tapering it
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[November 07, 2016] ROME
(Reuters) - The European Central Bank is not considering
reducing its bond-buying program known as Quantitative
Easing, and is looking instead at how far to extend it
after the current March 2017 deadline, the Bank of Italy
said on Monday.
Pedestrians walk past the headquarters of the European
Central Bank (ECB) in Frankfurt, Germany September 8,
2016. REUTERS/Ralph Orlowski
Luigi Signorini, a member of the Italian central bank's
executive board, was asked during testimony to parliament
whether the ECB was looking at how to taper QE.
"There is no prospect of this," Signorini replied. "The question
is how much to extend the limits that were given."
Facing stubbornly low inflation, the ECB is expected to decide
in December whether to extend its 80 billion euro ($88.5
billion) per month asset buys beyond March, having to balance
diminishing costs with increasing side effects.
(reporting by Giuseppe Fo
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