ECB's exit from crisis measures will be "very gradual": Rehn

BY Reuters | ECONOMIC | 09/16/21 05:13 AM EDT

HELSINKI (Reuters) - Any exit from the European Central Bank's crisis-fighting measures will be "very gradual" and will ensure that favourable financing conditions are maintained, Finnish central bank chief Olli Rehn said on Thursday.

The ECB will debate in December when and how to wind down its 1.85 trillion euro Pandemic Emergency Purchase Programme and whether it needs to ramp up other stimulus measures to pick up the slack.

"I'm confident that we will be able to find a viable and meaningful way of ensuring favourable financing conditions when we start our very gradual transition from the crisis measures to the next normal," Rehn, who sits on the ECB's rate-setting Governing Council, told a news conference.

(Reporting by Essi Lehto; Writing by Balazs Koranyi; Editing by Alex Richardson)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.