ECB Officials Disagree on How Much Is Too Much for Stimulus Plan
- Chief economist sees need for ‘long period’ of accommodation
- Dutch central-bank chief says ECB is close to overdoing it
Schaffrik, Kohli on the Future of ECB Bond-Buying
This article is for subscribers only.
European Central Bank policy makers continued to air their differences over when to rein in stimulus, sending conflicting signals on whether pumping cash into the economy for much longer will help the euro area or hurt it.
“Underlying inflationary pressure remains subdued” and “we still need a long period of accommodative policy,” Executive Board member Peter Praet, the ECB’s chief economist, told Belgian newspaper De Standaard in an interview published on Saturday. Governing Council member Klaas Knot, speaking on Dutch television on Friday night, warned that the central bank is “very close to the point” of keeping quantitative easing for too long.