ECB to move to ‘hybrid’ balance sheet model – Finland’s Välimäki
Bank of Finland board member heralds “new dawn” of Eurosystem monetary policy implementation
The European Central Bank will change its balance sheet to a “hybrid model” from its current oversized one, Tuomas Välimäki revealed today.
Speaking at the Bank of Finland’s conference on monetary implementation on June 11, the central bank board member said the Eurosystem’s new model will have a “structural outright portfolio together with lending operations”. The marginal reserve unit will be supplied in a “demand-driven manner”, via lending.
The speech is the first hint at some of the results
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