January 18, 2012
The European Central Bank is looking for a possible alternative to its bond-buying program, ECB Governing Council Member Ewald Nowotny said in an interview.
Though Mr. Nowotny wasn't specific on what alternatives are under consideration, his comments on Monday are the first from a top ECB official suggesting the bank is actively exploring ways to exit the controversial program.
Critics, particularly in Germany, equate central-bank purchases of bonds with financing governments, eroding the ECB's independence and risking a potentially dangerous inflation spiral. ECB President Mario Draghi has repeatedly stressed the temporary nature of the program since taking office in November.
"We are discussing other possible alternatives. This discussion is however not so far along that we could do without the SMP [Securities Markets Program]," Mr. Nowotny said, referring to the formal name of the bond-buying effort. "That is a discussion that includes all monetary-policy instruments."
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