ECB may pave the way for unlimited QE
A member of the ECB's Governing Board, and the governor of the Bank of Spain, de Cos, in an interview called on the ECB to consider removing the current ceiling on debt purchase plans, emphasizing that further interest rate cuts can be made if necessary.
Although the European Central Bank did not cut the interest rates after the emergency meeting and only launched bond purchasing plan of 750 billion euros, Bloomberg quoted that the meeting had discussed the Outright Monetary Transactions (OMT), which is much more less restrictive, meaning that ECB may pave the way for unlimited debt purchases.
On the other hand, Reuters quoted news that the European Central Bank President Lagarde suggested that the EU countries should seriously consider about jointly raising funds in the video conference with the finance ministers of the eurozone. EU countries can issue new bonds in order to respond to the epidemic and support the economy. However, EU members have different views. France, Italy and Spain support it while Germany, Netherlands and the Nordic countries oppose it.
The news did not have a significant negative impact on the euro. The euro rose on Wednesday and regained 1.09 on Thursday.