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在线翻译:
szdaily -> World Economy -> 
ECB hawks rally against Draghi’s farewell stimulus
    2019-09-16  08:53    Shenzhen Daily

CONSERVATIVE policymakers slammed the European Central Bank’s (ECB’s) lavish stimulus measures Friday, voicing doubts about the need and effectiveness of a package that could consume most of the bank’s remaining firepower.

Facing a protracted growth slowdown, the ECB cut rates deeper into negative territory Thursday and relaunched fresh bond purchases with no scheduled end-date, a move that divided the normally collegial Governing Council.

Although no vote was taken, sources with direct knowledge of the discussion said that over a third of policymakers opposed the fresh asset buys, pushed by outgoing ECB chief Mario Draghi, an unusually high number for a body that normally strives for consensus.

“This broad package of measures, in particular restarting the asset purchase program, is disproportionate to the present economic conditions, and there are sound reasons to doubt its effectiveness,” said Dutch central bank chief Klaas Knot, a frequent critic of the bank’s ultra-easy monetary policy.

While disagreements are frequent, ECB policymakers usually line up behind decisions and refrain from openly criticizing its policy.

Bundesbank President Jens Weidmann, another key critic, also said the stimulus was excessive, and Thursday’s decisions indicated that rates will stay low for a long time.

Germans have been especially irked by negative ECB rates and mass-selling newspaper Bild portrayed Draghi as “Count Draghila,” a blood-sucking vampire, who is sucking dry the bank accounts of German savers.

Other dissenters included French central bank Governor Francois Villeroy de Galhau, ECB board member Benoit Coeure, also a Frenchman, German board member Sabine Lautenschlaeger and Estonian central bank chief Madis Müller, sources said.

While each policymaker gets one vote, the dissenters represented countries that account for more than half of the eurozone’s gross domestic product.

(SD-Agencies)

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