So says Bank of France governor and ECB governing council member Villeroy speaking to Welt am Sonntag 12 June 2016
- primarily the BOE would have to respond to possible Brexit "but if necessary the ECB is ready to act"
- Brexit would have consequences for London as financial centre
Joint intervention can not be ruled out, and there is market talk of a plan being out in place as I reported previously here. The fact remains that both the UK and Eurozone will have currency wobbles if we do vote to Leave.
On ECB QE he says:
- defends corp bond buying
- rejects criticism that ECB allegedly weighs in on European industrial policy with the purchases
- Germany is the only country that believes ECB policy shaped by fact that Draghi is Italian, says allegations "unfair"
- other central banks inc US Fed successfully pursued similar policy as ECB
- ECB might need to explain policy better
Central banks giving clear communication? Now that really is too much to ask.
Enjoy the rest of your week-end one and all.
