ECB Unanimous on Stimulus Need Last Month But Split on Extent

Bloomberg Quint | Jan 14, 2021 at 7:37 PM
  • Members of the European Central Bank’s Governing Council differed over how much additional monetary stimulus was needed at last month’s meeting, even as they accepted the need for action.
  • The council agreed more aid was needed to preserve favorable financing conditions “in view of the economic fallout from the resurgence of the pandemic, the downward revision to the projected inflation path, and the resulting risks of an unanchoring of inflation expectations,” according to the account of the Dec. 9-10 meeting, published Thursday.
  • On the proposal for a higher allowance for the ECB’s program of ultra-cheap loans agreed at the meeting, some members expressed reservations that it “would make banks increasingly dependent on the Eurosystem as their funding source”.