The European Central Bank's (ECB) George Provopoulos has said that the ECB may never need to use its bond-buying program. Provopoulos suggested that Greek growth could happen sooner if reforms are maintained and that the country should return to growth by the middle of 2014. He suggested that Greece has avoided contagion from the Cyprus bailout and that April could show a net deposit outflow. Data today has shown that Cypriot bank deposits fell by only 3.9 per cent or €1.8bn in March.
Earlier the ECB's Jörg Asmussen said that the effect of an interest rate cut would be limited in affecting the periphery, while it would relax unprecedently easy core financing conditions. There are concerns that holding interest rates artificially low could continue to distort markets.