BCE-QE and rate modulation sparked the most opposition-minutes

On September 12, the ECB announced a 10 basis point decrease in its deposit rate, the revival of its asset purchase program and the introduction of a deposit rate modulation mechanism designed to reduce its deposit rate. impact on bank accounts.

But more than a third of the members of the Governing Council, including the representatives of France and Germany, opposed the resumption of quantitative easing (QE).

These opponents said that by continuing its purchases of bonds, the ECB took the risk of calling into question the limits it has set itself in this area, explains the report.

"This would exhaust the buying universe and challenge the limits of the program, which are considered important to ensure that the border between monetary and fiscal policy is not erased," the document added.

"A number of members felt that the arguments for a resumption of net asset purchases were not strong enough, either because they saw them as a less effective instrument (…) or because they regarded them as an instrument of last resort. "

The report also shows that some members of the Board were willing to support a 20 basis point decrease in the deposit rate provided that the support plan excludes the resumption of asset purchases.

Reservations were also expressed on the modulation of the deposit rate, adopted by a "majority" of Council members while the rate cut was voted by a "very large majority".