May 12 (Bloomberg) -- European Central Bank Executive Board member Juergen Stark said the bank will hold the government bonds it buys until they mature.
The purchase of government bonds wonât fuel inflation, because the ECB will âneutralizeâ the additional liquidity, Stark told Germanyâs Deutschlandfunk in an interview today. Stark denied the Frankfurt-based bank had been pressured by politicians into the bond purchases and insisted the ECB remains independent.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aCkgvSKWoPCg
The purchase of government bonds wonât fuel inflation, because the ECB will âneutralizeâ the additional liquidity, Stark told Germanyâs Deutschlandfunk in an interview today. Stark denied the Frankfurt-based bank had been pressured by politicians into the bond purchases and insisted the ECB remains independent.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aCkgvSKWoPCg