|
Speaking to the Jan. 22 gathering of the ECB's
Governing Council, which sets policy, Peter Praet addressed the
risks of waiting before launching a scheme to print fresh money
to buy government bonds, known as quantitative easing (QE).
Praet's presentation and the discussion afterwards convinced
most of those present of the need for immediate action, although
some argued that such a step should only be taken in
'contingency situations.
In the document, which gives the clearest picture yet of how
governors launched the scheme, officials reported Praet as
telling the meeting: "Due account would also need to be taken of
the risks stemming from not acting at the present meeting, which
might be higher than the risks stemming from acting."
"A reversal of recent financial market developments could be
expected if no further policy measures were announced,"
officials write in the record of the meeting.
"The associated positive impact ... could be unwound and a
higher degree of volatility or instability in the financial
markets could create additional risks."
In the end, most were in agreement. "There was a broadly shared
view that the conditions were fully in place for taking
additional monetary policy action at the current meeting," they
added.
This is the first time the ECB has published details of its
discussions and brings it more in line with other major central
banks like the U.S. Federal Reserve, Bank of England and Bank of
Japan.
But the exercise is sensitive. As a result, none of the 19
national central bank governors who attend are identifiable.
(Writing by John O'Donnell; editing by Paul Carrel)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
