The two German members of the Council of the European Central Bank (ECB) have apparently led resistance to the expansion of the asset purchase program, the President Mario Draghi on …
By Jana Randow, Jeff Black
(Bloomberg) – The two German members of the Council of the European Central Bank (ECB) have apparently led resistance to the expansion of the asset purchase program, the President Mario Draghi announced on Thursday.
Bundesbank President Jens Weidmann and Sabine Lautenschlager, ECB Executive Board member from Germany, rejected the implementation of the plan at this stage, as Fed officials said from the euro area, who wished to remain anonymous because the discussions are private.
Also Klaas Knot from the Netherlands, Ewald Nowotny from Austria and Estonia Ardo Hansson, according to the informants have expressed reservations about the program at this time. A spokesman for the ECB declined to comment.
Draghi had pledged on Thursday to buy securities in the amount of at least 1.1 trillion euros to the risk a deflationary spiral encounter. A “vast majority” in the 25-member Governing Council was, according to Draghi sure to act now, even though there was no formal vote on the issue.
The central bank will buy monthly for 60 billion euros securities. The sum set probably about 45 billion euros of government bonds, 5 billion euros of bonds of European institutions and agencies as well as 10 billion euros under its existing programs for asset-backed securities and covered bonds together, said one of the people.
The ECB is reported to believe that purchases the rate of inflation in the euro area and by 0.4 percentage points this year and by 0.3 percentage points in the coming
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