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ECB's Knot says no need for new help for European banks, Spain bond-buying
AMSTERDAM (AP) ' Klaas Knot, a member of the European Central Bank's governing council, says he doesn't see any need for the ECB to engage in buying up Spanish bonds or launch a third program of low-rate loans to European banks.
Knot, the Netherlands' central bank president, was addressing students at the University of Amsterdam Friday.
He said that a spike last week in the interest rate of Spanish government bonds was due to "awkward communication" by Spanish authorities about their plans for budget cuts.
"I don't see any need for it" he said of direct ECB Spanish bond-buying or longer term refinancing operations offering banks liquidity at low interest rates.