Economics
ECB Stimulus Is Said to Have Needed Caveat to Win Hawks’ Support
- Skeptics persuaded by calling 500 billion-euro boost a ceiling
- Bundesbank’s Weidmann opposed Thursday’s bond-buying decisions
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The European Central Bank’s increase in emergency bond-buying won broad backing from policy makers only because hawkish officials secured a caveat specifying the whole amount might not be deployed, according to people familiar with the debate.
The compromise led to the ECB deciding that its 500 billion-euro ($608 billion) boost to its pandemic purchase program would come with wording in President Christine Lagarde’s opening statement that “the envelope need not be used in full,” said the people. They asked not to be identified because the discussions were private.