ECB: extent of TPI purchases will depend on seriousness of risks for monetary policy transmission The Governing Council of the ECB approved the Transmission Protection Instrument (TPI). The ICC represents a further tool available to the Governing Council that can be activated to counter unjustified, disordered market dynamics that seriously jeopardize the transmission of monetary policy throughout the euro area. The extent of the ICB purchases, the ECB specifies, will depend on the severity of the risks for the transmission of monetary policy. Purchases are not subject to ex ante restrictions. “By safeguarding the transmission mechanism, the ICC will allow the Governing Council to more effectively fulfill its mandate to preserve price stability,” reads the ECB statement.
ECB approves TPI anti-fragmentation instrument, purchasing scope will depend on seriousness of risks for monetary policy transmission
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