ECB's Linde: Asset purchases considered as an option

FXStreet (Łódź) - Bank of Spain head and ECB Governing Council member Luis María Linde said on Wednesday at an event in Valencia that the MPC had been mulling over the possibility of resorting to asset purchases, but that it was a complicated issue, as Eurozone financial markets remain fragmented.

"The ECB has lots of options but none of them are good," Jamie Coleman comments on FXBeat. "It would like to buy asset-backed securities to help revive bank lending but there is no deep market for European ABS. It could buy EZ government bonds but would face legal challenges as well as liquidity problems in some of the smaller euro zone member markets."

Furthermore, Linde said that the Spanish economy was on a steady path to recovery and that the Spanish central bank could upgrade its GDP forecast in July.