The European Central Bank has capped the maximum purchase of euro zone sovereign bonds at 20 billion euros a week for now and is not considering bigger action in response to an EU summit decision to create a fiscal union, ECB sources said on Friday.
The sources said the agreement among the 17 euro zone countries and several other states to conclude a separate treaty on stricter budget discipline was in line with expectations of the ECB's Governing Council, which met on Thursday.
We more or less anticipated what would come out, one source said. We don't see any need for new deliberation.
Another source said the bond-buying limit would remain at the level set weekly for the last few weeks by the governing council of a maximum of about 20 billion euros.
You will see some further purchases but not the huge bazooka that some people in the markets and the media are awaiting, the second source said.
(Writing by Paul Taylor; Editing by Mark John)