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Citing Bundestag’s official researchers, Germany’s Augsburger Allgemeine daily newspaper reported on Monday, the Bundesbank must be responsible for examining whether the bond-buying programme of the European Central Bank (ECB) is proportionate.

Last month, the German Constitutional Court gave the ECB three months to explain the proportionality of its bond purchases or Germany’s Bundesbank would opt-out from participating in the programme.

The parliamentary officials said: “The Bundesbank must be primarily responsible for this review.” 

The Bundesbank would have to withdraw from the bond purchase programme if it were found to be disproportionate, it added.

Market reaction

Despite jittery markets in Asia this Monday, the US dollar fails to benefit from a flight to safety, as EUR/USD challenges daily highs near 1.1260.

The spot has turned positive in the last hour, having reversed a dip to 1.1227.

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