The amount of bonds eligible for the ECB to buy under its quantitative-easing programme is poised to shrink as the purchases risk pushing more yields below zero, according to Societe Generale.

European Central Bank executive board member Benoit Coeure said bond purchases under the bank’s quantitative easing programme will aim to match the existing maturity profile of the market.

If quantitative easing becomes the responsibility of individual central banks then it will not be effective, according to the Minister for Finance Michael Noonan.

European Central Bank policymaker Christian Noyer said over the weekend that it seemed that the risk of deflation had been avoided in the eurozone, even if inflation remained too low.

Eurozone interest rates will diverge from those in the US and Britain for a number of years, according to European Central Bank (ECB) executive board member, Benoit Coeure.

The European Central Bank may ease its policy further if the euro gains strength, said ECB executive board member Benoît Coeuré.

An unexpected drop in eurozone inflation raises pressure on the ECB to consider fresh policy action next week to counter deflation risks and support a weak recovery that may be running out of steam.

German Finance Minister Wolfgang Schaeuble has squared off with the European Central Bank over the pace of pooling bank levies in a euro-area resolution fund, potentially slowing the proposal’s progress into law.

Central Bank director Fiona Muldoon has warned that half of the €50bn loans to SMEs are in some form of distress.

ECB executive board member Benoît Coeuré said policy makers may not cut interest rates further as confidence in the eurozone’s economic outlook is improving and inflation remains high.

German central bank chief Jens Weidmann’s reported threat to resign has piled pressure on ECB president Mario Draghi to mollify opposition to a new bond-buying plan without tying it up in so many knots it is rendered ineffective.

The European Central Bank is expected to discuss interest rate cuts at its next meeting but although reducing rates from an all-time low of 1% was possible, it would not be a cure-all, an ECB executive board member has declared.

European stocks rebounded from a two-month low yesterday and Spanish bonds rose after an ECB official signalled that the bank may revive its bond-purchase programme.

EUROPEAN Central Bank President Mario Draghi agreed to put Belgium’s Peter Praet in charge of the bank’s economics division, ignoring calls from Germany that one of its nationals should keep the job.