Hernández de Cos says yield curve control ‘worth exploring’
ECB could target differential between OIS curve and riskier sovereign yields
The European Central Bank could explore options to implement some kind of yield curve control, said Spanish governor Pablo Hernández de Cos.
“I think yield curve control is an option worth exploring,” said de Cos in a recent interview with Central Banking.
The Bank of Japan was the first major central bank to adopt this policy. In 2016, it pledged to keep 10-year government bonds around 0% in a bid to boost chronic below-target inflation. The BoJ offers to purchase any quantity of outstanding
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