The European Central Bank will refrain from publishing any formal cap on bond yields when it announces a plan to buy distressed eurozone sovereign debt at its governing council meeting today , two people familiar with the matter said.
The programme, dubbed “monetary outright transactions” in internal ECB discussion papers, was first outlined last month by Mario Draghi, the bank’s president, and is intended to combat fears of a collapse of the single currency. After a fierce debate over its merits, the programme is set to be revealed in detail following the meeting of the bank’s executive board and the 17 heads of eurozone central banks.
It has met with open opposition from the German Bundesbank, which believes central banks should focus solely on price stability. The leaders of France, Spain and Italy have by contrast lobbied hard in favour.