ECB to channel cash from north to south in bid to cap spreads – sources
The European Central Bank will buy bonds from Italy, Spain, Portugal and Greece with some of the proceeds it receives from maturing German, French and Dutch debt in a bid to cap spreads between their borrowing costs, sources told Reuters. The ECB will kick off this rebalancing on Friday to prevent financial fragmentation among euro zone countries from getting in the way of its plan to raise interest rates – with an additional scheme due to be unveiled next month. The central bank has divided the euro zone’s 19 countries ...
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