ECB can deviate from countries' bond-buying quotas as needed

FILE PHOTO: The headquarter of the European Central Bank (ECB) is photographed during sunset, as the spread of the coronavirus disease (COVID-19) continues in Frankfurt, Germany, April 28, 2020. REUTERS/Kai Pfaffenbach/File Photo

FRANKFURT (Reuters) - The European Central Bank can deviate from each euro zone country’s quota to the extent needed when it buys government bonds under its Pandemic Emergency Purchase Programme, the ECB’s chief economist Philip Lane said on Tuesday.

“The whole point of having flexibility is that you can deviate from the capital key,” Lane told an online interview with the Institute of International Finance.

“It’s very much a state-contingent issue,” he added.

Reporting by Francesco Canepa; Editing by Alison Williams