European Central Bank policymakers were deeply divided last month over reviving ...
FRANKFURT - European Central Bank policymakers were deeply divided last month over reviving bond purchases, according to minutes of their meeting that show a rift within the euro zone’s most important institution deepening ahead of a change of leadership.
But the push back from some conservative members of the ECB Governing Council, which has since spilled into the public debate, raises questions about the bank’s resolve and the ability of policymakers to work together. “As entertaining as the current divisions at the ECB might be, it harms the bank’s credibility and consequently its effectiveness,” Brzeski added.
While committee recommendations are not binding, opposition from both policymakers and staff at the euro zone’s 19 national central banks highlights the divisions within an institution that normally strives for consensus.
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