QE Target intact, concerns of bond scarcity exaggerated – Draghi

FXStreet (Mumbai) - The European Central Bank (ECB) President Mario Draghi, in his press conference, said that the bank will fully implement the QE program, thereby contradicting the speculation that the bank would back away from its EUR 1 trillion Euro program due to concerns of shortage of bonds.

Draghi said that the concerns regarding the availability of bonds for monthly purchases of EUR 60 billion are a “little exaggerated”. Worries about the shortage of bonds are not supported by evidence, added Draghi, while stating that the QE program is flexible enough the bond supply situation changes.

President Draghi also expressed surprised by the talk of QE taper, especially since the program is only a month old.