11 Nov 2013
ECB members divided on policy tools
FXstreet.com (Barcelona) - Divisions between the northern-led arm of the ECB board and other southern European representatives are growing after the decision taken by Mario Draghi to cut the benchmark lending rate by 25 basis points.
According to the Financial Times: “Bickering over last week’s rate cut have revived fears in Frankfurt of a German popular backlash against the ECB’s policy making; two German members of the ECB’s 23-member governing council were among the six-man dissent against the rate cut..."
The FT added that "among those who voted with the two Germans were the heads of the Dutch and Austrian central banks, with one senior official saying at least a quarter of the council splitting from Draghi on many major policy initiatives."
As noted by Valeria Bednarik, Chief Analyst at FXstreet.com: "News over the weekend show anti-ECB sentiment in Germany could hamper Mr. Draghi’s ability to move aggressively against signs of deflation and on other issues sensitive to Berlin."
According to the Financial Times: “Bickering over last week’s rate cut have revived fears in Frankfurt of a German popular backlash against the ECB’s policy making; two German members of the ECB’s 23-member governing council were among the six-man dissent against the rate cut..."
The FT added that "among those who voted with the two Germans were the heads of the Dutch and Austrian central banks, with one senior official saying at least a quarter of the council splitting from Draghi on many major policy initiatives."
As noted by Valeria Bednarik, Chief Analyst at FXstreet.com: "News over the weekend show anti-ECB sentiment in Germany could hamper Mr. Draghi’s ability to move aggressively against signs of deflation and on other issues sensitive to Berlin."