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The myth of ECB sterilisation

Critics say the practice of offsetting peripheral bond-buying through a commensurate reduction in other activities is 'somewhat fictitious' – if a strong communication tool

The markets have been waiting with bated breath for Mario Draghi, the president of the European Central Bank, to provide more flesh on the bones of how the bank will intervene in the peripheral bond markets.

There have been reports and leaks that suggest that ECB purchases will be unlimited in size, will not be senior to other bondholders and will involve bonds up to three years in maturity.

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