Germany's constitutional court declined requests by a group of German academics and politicians to end the Bundesbank's participation in the European Central Bank's €2.3 trillion asset purchase program, resting the matter with its EU counterpart, various media reports said.
A July court decision had sent the challenges to the quantitative easing program to the European Court of Justice, or ECJ. The judges said that the EU court should rule against it as it violated the central bank's mandate under EU treaties, Bloomberg News reported.
They had requested a fast-track procedure, but the ECJ reportedly rejected the request, saying it would hear the case "with priority."
Germans have strongly opposed the ECB policy and the plaintiffs revisited the matter by requesting a temporary injunction as ECJ could move slowly. The federal court rejected the requests, not wanting to give a ruling before the matter is resolved by the bloc's top court, Reuters said.
The ECB's asset purchases are due to expire at the end of the year, but policymakers are likely to extend them well into 2018 as inflation is likely to remain below its target by the end of the decade, the newswire noted.