ECB to be challenged by Eurozone central bankers

A news report published by Reuters on Tuesday showed that Eurozone central bankers were to challenge European Central Bank President Mario Draghi on his leadership style. This suggests that this internal rift could cause a hurdle to further ECB policy easing measures.

Dissatisfaction among Euro are national governors who hold a majority on the 24-member council could limit Draghi’s space for bolder policy action in the coming months as the bank faces crucial choices about whether to buy sovereign bonds to combat falling inflation and economic stagnation.

The bankers are particularly angered that Draghi effectively set a target for increasing the ECB’s balance sheet immediately after the policy-making governing council explicitly agreed not to make any figure public, the news report said.

“This created exactly the expectations we wanted to avoid,” an ECB insider said. “Now everything we do is measured against the aim of increasing the balance sheet by a trillion (euros)… He created a rod for our own backs.”

The news report caused the euro to rally back above the key technical level of $1.2500.

The post ECB to be challenged by Eurozone central bankers appeared first on Forex Circles.

Source:: ECB to be challenged by Eurozone central bankers

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