ROME, December 15 (Reuters) – There are “many” the governors of the European Central Bank in favor of action to curb the risk represented by the falling price of oil, according to the number one of the Bank of Italy Ignazio Visco.
The price dynamics “will be worse in the coming months with the fall of oil. There is a strong issue for countries that have more debt, for this, at the level of the ECB, most of us claim that we should go in direction of the containment of these risks, “Visco said in a hearing of the House.
Just before the governor had said that before the persistence of a risk of deflation, the ECB should carry out large-scale bond purchases.
Against this last option was expressed in an interview to some newspapers Bundesbank President Jens Weidmann that Visco describes as a person “sympathetic that could be my son.”
The Bank of Italy governor noted that the interview of Weidmann “is interesting because it does not say that you do not have to make purchases of sovereign bonds and that it is forbidden to do so but it highlights the risks on the balance sheets of domestic banks in case of purchase s ecurities because if a problem arises in a State are landed with the tax payers of the other country. “
He added: “It ‘s true that there are risks on the balance sheets of central banks but it is also true that (with purchases of securities) reduce individual risks by lowering the overall macroeconomic risk.”
(Giuseppe Fonte)
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