Bank of Italy Governor Ignazio Visco said it is not clear if the bond-buying program announced by the European Central Bank (ECB) last week will prove big enough.
“Who knows?” Visco told the Wall Street Journal when asked whether the ECB’s plans to purchase about 60 billion euro (US$67.2 billion) a month in eurozone government bonds and other assets will be large enough to effectively counter deflation.
Visco, who is a member of the ECB’s governing council, said the central bank settled on the size based in part on how much the bank’s balance sheet has shrunk since 2012.
He also said that the bond-buying program, known as quantitative easing, is essentially open-ended.
“If medium term price stability will not appear to be restored by the time the program ends, more will be done,” Visco was quoted as saying.
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