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Forward guidance on rates, QE not easy for ECB - Asmusssen

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(Globalpost/GlobalPost)

LONDON (Reuters) - Providing forward guidance on future interest rates of the type of large scale asset purchases being used by other major central banks would not be easy to apply in the euro zone, one of the ECB's top policymakers said on Thursday.

"Large scale asset purchase programmes targetted at capital markets would not be very helpful in the euro area," ECB Executive Board member Joerg Asmussen said at an Economist banking conference.

"Policies like forward guidance (on interest rates) or quantitative easing which aim to push down the risk free rate are not easily applicable," he added

(Reporting by Marc Jones and Huw Jones)

http://www.globalpost.com/dispatch/news/thomson-reuters/130425/forward-guidance-rates-qe-not-easy-ecb-asmusssen