ECB Accounts Show Most Members Saw QE As Only Available Option
2015-02-19 12:30:00.12 GMT
By Alessandro Speciale and Jeff Black
(Bloomberg) -- “Large number” of ECB Governing Council
members were “in favor of expanding the existing private-sector
asset purchase programs to include purchases of a broad
portfolio of securities of euro-area governments and agencies
and supranational institutions,” ECB accounts of Jan. 22
monetary-policy meeting show.
* “Purchases of sovereign debt appeared to be the only
remaining instrument of sufficient scope to provide the
necessary monetary stimulus to deliver on the ECB’s price
stability objective”
* “Some members” were in favor of “maintaining a wait-and-
see stance,” saw “no urgent need for monetary policy
action” at Jan. 22 meeting
* Those members saw “contained” risks of second-round
effects from low euro-area inflation, mon pol accommodation
already in the pipeline from existing measures
* Those members held it that “purchases of sovereign bonds
should remain a contingency instrument of monetary policy,
to be used only as a last resort in the event of an
extremely adverse scenario, such as a downward deflationary
spiral”
* While corp-bond purchases considered at Jan. 22 meeting, it
was “widely judged” that size of mkt offered “limited
scope for providing the degree of accommodation needed”
* ECB Executive Board member Peter Praet originally proposed
EU50b monthly purchases until end of 2016
* “Broad support” for “front-loading” purchases by raising
monthly purchases volume to EU60b until end of Sept. 2016
* NOTE: ECB Set to Unveil QE Dispute as Meeting Summaries Go
Public
For Related News and Information:
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To contact the reporters on this story:
Alessandro Speciale in Frankfurt at +49-69-9204-1201 or
aspeciale@bloomberg.net;
Jeff Black in Frankfurt at +49-69-92041-205 or
jblack25@bloomberg.net
To contact the editor responsible for this story:
Fergal O’Brien at +44-20-3525-7152 or
fobrien@bloomberg.net
2015-02-19 12:30:00.12 GMT
By Alessandro Speciale and Jeff Black
(Bloomberg) -- “Large number” of ECB Governing Council
members were “in favor of expanding the existing private-sector
asset purchase programs to include purchases of a broad
portfolio of securities of euro-area governments and agencies
and supranational institutions,” ECB accounts of Jan. 22
monetary-policy meeting show.
* “Purchases of sovereign debt appeared to be the only
remaining instrument of sufficient scope to provide the
necessary monetary stimulus to deliver on the ECB’s price
stability objective”
* “Some members” were in favor of “maintaining a wait-and-
see stance,” saw “no urgent need for monetary policy
action” at Jan. 22 meeting
* Those members saw “contained” risks of second-round
effects from low euro-area inflation, mon pol accommodation
already in the pipeline from existing measures
* Those members held it that “purchases of sovereign bonds
should remain a contingency instrument of monetary policy,
to be used only as a last resort in the event of an
extremely adverse scenario, such as a downward deflationary
spiral”
* While corp-bond purchases considered at Jan. 22 meeting, it
was “widely judged” that size of mkt offered “limited
scope for providing the degree of accommodation needed”
* ECB Executive Board member Peter Praet originally proposed
EU50b monthly purchases until end of 2016
* “Broad support” for “front-loading” purchases by raising
monthly purchases volume to EU60b until end of Sept. 2016
* NOTE: ECB Set to Unveil QE Dispute as Meeting Summaries Go
Public
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporters on this story:
Alessandro Speciale in Frankfurt at +49-69-9204-1201 or
aspeciale@bloomberg.net;
Jeff Black in Frankfurt at +49-69-92041-205 or
jblack25@bloomberg.net
To contact the editor responsible for this story:
Fergal O’Brien at +44-20-3525-7152 or
fobrien@bloomberg.net