The German constitutional court has left the Deutsche Bundesbank facing the dilemma of which of two conflicting legal decisions it should obey when implementing the European Central Bank’s sovereign bond purchases.

The May 5 ruling is unlikely to immediately harm the independence of the ECB and its unconventional monetary policies, former officials and analysts tell Central Banking. However, it may limit the central bank’s scope both under the public sector purchase programme (PSPP) and the new

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