Economics
ECB Hawks Take the Lead on QE Debate as Doves Stay Quiet
- Weak inflation despite strong economic growth poses a dilemma
- Accounts of December policy meeting will be published Thursday
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As the European Central Bank enters 2018, the debate over its stimulus plans is being dominated by policy makers warning against keeping policy ultra-loose for too long.
With the euro-area economy expanding solidly after three years of negative interest rates and quantitative easing, hawks such as Bundesbank President Jens Weidmann have stepped up calls for a definite end-date to bond purchases. Even Executive Board member Benoit Coeure, a leading proponent of QE when the region faced deflation, now sees a “reasonable chance” the latest extension of the program to September will be the last.