ECB chief Mario Draghi told reporters on Thursday that his speaking of open-ended bond buying has calmed the market, proving once more that monetary policy has become more about communication than action in these markets. As risk assets rallied, Draghi and the ECB’s governing council decided to keep interest rates unchanged, putting the burden of action on Spain and the administration of Mariano Rajoy to formally request the bailout; meanwhile, taking advantage of lower borrowing costs, Spain placed short-term bonds at the higher end of the range.
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