Target2 balance surge not a sign of eurozone ‘stress’ – ECB’s Praet
Euro RTGS claims have swollen by €400 billion since introduction of QE
The €400 billion ($446.9 billion) surge in positive balances held in the Target2 real-time gross settlement (RTGS) system since the second half of 2014 has little to do with fragmentation or financial stress in the eurozone, according to Peter Praet, the European Central Bank's (ECB) chief economist.
Praet says the latest rise in positive balances mirrors the introduction of quantitative easing (QE) by the ECB. "They are largely the result of the asset purchase programme, and do not signal
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