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ECB Watch: Mounting opposition and headwinds to further easing
At the September meeting, the ECB decided on a full stimulus package comprising of a rate cut, restart of QE, a strengthened forward guidance, a move to a two-tiered rate system, and easing terms of the TLTROs. Since then, we got a sense of the discussion at the meeting. An unprecedented divide within the ECB council has become increasingly clear. A number of members of the Governing Council have publicly voiced their disagreement with resuming QE, Sabine Lautenschläger has resigned seemingly out of protest, and the Council ignored advice against QE from officials preparing the policy options. Since the meeting, in ... (full story)