The European Central Bank's new bond-purchase programme will not lead to inflation or compromise the bank's independence, ECB President Mario Draghi told German lawmakers on Wednesday in a detailed defence of his signature policy plan.
In prepared remarks for delivery at the beginning of his meeting with the lawmakers, Draghi addressed point by point their concerns about the programme - dubbed Outright Monetary Transactions (OMT).
"OMTs will not lead to disguised financing of governments ... OMTs will not compromise the independence of the ECB," he said in a statement for delivery to the lawmakers.
"OMTs will not create excessive risks for euro area taxpayers," he added. "OMTs will not lead to inflation."
Instead, he said interventions under the programme "are designed to send a clear signal to investors that their fears about the euro area are baseless."
The ECB has yet to buy any bonds through the programme, which was announced in September.
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