ECB Stimulus Disagreements Signal Vigorous Debates Ahead
- Central bank publishes account of Dec. 7-8 Governing Council
- Some policy makers rejected both options for QE extension
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European Central Bank policy makers appear to have had a lively debate on how to set the path of stimulus last month, signaling more tension may be ahead as euro-area inflation accelerates.
While the Governing Council largely shared the view that “the scenario of a gradual uptrend in inflation still relied, to a considerable degree, on accommodative monetary-policy support, ” the 25-member body couldn’t reach unanimity on how to maintain that support, an account of their Dec. 7-8 meeting shows. Executive Board member Peter Praet, the chief economist, presented two options of extending bond-buying after March for 6 months at 80 billion euros ($85 billion) a month, or for 9 months at 60 billion euros.