Continued ECB bond buys key to pushing out rate hike: Draghi

FRANKFURT (Reuters) – The European Central Bank’s decision to extend its bond-buying program until September 2018 was key in pushing market expectations for the first rate hike further into the future, ECB President Mario Draghi said on Friday.

“Asset purchases matter also for the signals they entail about the path of future policy rates: the so-called ‘signaling effect’,” Draghi told a banking conference.

“The signaling effect of asset purchases has therefore naturally increased in prominence relative to the duration effect.”

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