QE could go beyond September 2016 if required – ECB’s Coeure

FXStreet (Mumbai) - The European Central Bank (ECB) executive council member Benoit Coeure while speaking in Paris today said that the bank could extend its QE program beyond Sept 2016 if required, while stating that the central bank’s actions are strictly linked to mandate.

The council member disclosed that the ECB has bought EUR 9.8 billion in 3 days so far under the QE program, with the average maturity of the purchases so far being 9 years. Regarding the falling exchange rate, Coeure said the drop is inevitable due to diverging monetary policies adopted by the Fed and the ECB.

On Greek issue, the council member said that Greek bonds should be the part of the QE program, although bailout review has to be concluded first. He further stated that do not initiate reforms will benefit less from the QE program.

The court also added that economic recovery is in accelerated phase, but advised to "be careful". The policy maker credited falling oil prices for much of the economic recovery.