ECB Jolts Markets With Fresh Comments on QE

19-May (Wall Street Journal) — Just when it seemed the market impact of its stimulus was fading, the European Central Bank has reminded investors about the power of its bond-buying program.

Comments by two ECB officials have jolted markets early on Tuesday. Benoît Coeuré said the central bank will moderately frontload its debt purchases to avoid too much buying in the quiet summer holiday period. And Christian Noyer added that the ECB is ready to go beyond its already announced stimulus in order to hit its inflation target, if necessary.

Investors have taken it as a sign the ECB means business.

The euro has tumbled more than 1%. By printing fresh euros to buy bonds, ECB QE drives down the currency—but the currency had rebounded in recent weeks.

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