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Germany’s central bank, Bundesbank, will need to take the lead in convincing German authorities that the European Central Bank (ECB) is acting within its mandate with regards to its bond-buying programme, Reuters reported, citing three sources.

Concerning Germany’s Constitutional Court ruling on Tuesday, “the sources with direct knowledge of discussions by policymakers said if the ECB were to take a direct role in responding to the ruling, it would effectively be accepting German jurisdiction and could give the impression it needs German permission to set policy,” Reuters wrote.

Market reaction

The market reaction to this headline was largely muted. As of writing, the EUR/USD pair was down 0.3% on the day at 1.0805.