ECB’s Draghi defends OMTs to German audience

Bond purchases under the European Central Bank's (ECB) outright monetary transactions (OMTs) scheme fall within the central bank's mandate, Mario Draghi, president of the ECB, told an audience of senior German business leaders.

Speaking at an event organised by the Federation of German Industries in Berlin, Draghi defended the OMTs, saying they were needed to repair the functioning of the monetary transmission mechanism, which had been damaged by fragmented financial markets.

Draghi said one of