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ECB market neutrality crumbling
Market neutrality, the principle holding the fort of conservatism against European Central Bank climate action, is beginning to crumble. Over the past few days, more central bankers across the Eurosystem have publicly questioned it for the first time. But there is still a long way to consensus. The debate around how far the ECB should go in addressing climate risks will be one of the dominant questions in its strategy review, the first comprehensive examination of the bank’s monetary policy framework since 2003. The principle of market neutrality posits that corporate bonds purchased under the ECB’s €270bn ... (full story)