European Central Bank President Mario Draghi on Thursday defended the bond-buying program dubbed Outright Monetary Transactions, launched last year.
A day after Germany's top court wrapped up a hearing over ECB's bond buying programme, Draghi said in Berlin that the program has been beneficial to everybody; sovereigns, corporations, banks as well as individuals, and it has benefited both periphery and core countries.
He reiterated that that OMT was necessary and in line with the mandate of price stability.
Elsewhere, ECB Governing Council member Jens Weidmann late Thursday warned against the risk of keeping interest rates too low for too long.
He added that all central banks face the challenge of exiting loose monetary policy when dangers to price stability emerge. Weidmann opposed ECB's bond buying program.
Another ECB policymaker, Yves Mersch said monetary policy accommodation is needed to keep prices in line with the ECB's definition of price stability. It has not run out of ammunition and it can employ more tools and measures whenever needed, Mersch added.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.