“TOKYO—European Central Bank policy maker Christian Noyer said the bank’s latest bond-buying program has had a significant effect in lowering borrowing costs for euro-zone countries and stemming concerns about the currency union’s future.
“It is bearing fruit, but it is probably too early to declare a final victory so we need to be attentive and see the development,” said Mr. Noyer, who is an ECB Governing Council member and governor of the Bank of France.
Speaking in an interview in Tokyo on Saturday, Mr. Noyer also said he is confident about the euro zone’s prospects for recovery in 2013 after a bruising period of economic contraction and rising unemployment this year.
Mr. Noyer also said that the current relative strength of the euro and yen indicates weaknesses in other advanced economies, and that the debate in the U.S. about the impending fiscal cliff shouldn’t obscure the need for longer-term steps to consolidate the world’s largest economy.
After concerns about a breakup of the euro zone pushed up interest rates in countries including Italy and Spain, the ECB announced its bond-buying program in September. The program calmed jumpy financial markets and pushed down bond yields in Italy and Spain, both struggling with hefty public and private debt.
Under the program, the ECB has said it is prepared to buy unlimited government bonds with a maturity of one to three years from the secondary market to lower borrowing costs, if the target country is following a euro-zone-approved bailout plan.”
If you enjoy the content at iBankCoin, please follow us on Twitter
