16 December 2014

Reuters: Coeure sees 'large consensus' at ECB for more action

"There is a large consensus in the governing council to do more, and we are discussing now on what tools to use." 

Coeure added, however, that he found what he called the "fascination" with QE "a bit naive." 

The size of the ECB's balance sheet is important as a signal of its determination to act, he said, but "nothing guarantees that what worked in the United States or Japan can be done identically here. We must think for ourselves."

The ECB has set itself a goal of expanding its balance sheet - by buying assets from banks and others in return for cash it hopes will be pushed into the economy - by up to 800 billion or even 1 trillion euros.

But German ECB policymakers Jens Weidmann and Sabine Lautenschlaeger opposed the ECB's decision earlier this month to firm up language on the expansion of the bank's balance sheet, sources have said. 

Weidmann confirmed on December 15 that he was skeptical of a broad-based QE program. 

Coeure said the question was whether what had already been decided by the ECB was enough to counter deflation risks, adding that this discussion was ongoing and could be resolved "rapidly." The ECB's next policy meeting is due on Jan. 22.

Full article on Reuters

Full interview (in French)

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