ECB slows asset purchases as policymakers weigh test

The European Central Bank slowed asset purchases last week, underlining the challenge for policymakers trying to expand the institution’s balance sheet. 

The ECB settled €233m of asset-backed-securities purchases in the week ended December 5, after spending €368m the first week of the programme.

The Frankfurt-based central bank also bought €3.126bn of covered bonds, down from €5.078bn the previous week. ECB president Mario Draghi has held out the prospect of yet more stimulus to boost the balance sheet when policymakers review current measures early next year.The ECB is preparing broad-based asset purchases, including government bonds, with any decision at its January 22 meeting linked to incoming information, two officials said.