ECB Minutes: Some officials worried that a firm end of QE might cause tightening
ECB Minutes from 25-26 Oct meeting now out 23 Nov
- keeping QE open-ended had broad support but a few wanting clear end-date
- discussed bigger and smaller cut in QE purchases
- Summing up, Mr Praet recalled that since the 6-7 September Governing Council meeting, financial conditions had remained broadly stable overall, while exchange rate volatility had partly receded. At the same time, borrowing conditions for firms and households remained very supportive
- Incoming information pointed to continued solid economic expansion in the second half of 2017. Risks to the growth outlook remained broadly balanced, with some upside risk in the near term.
- However, inflation developments still remained subdued. Measures of underlying inflation had ticked up moderately since early 2017, but they had yet to show more convincing signs of a sustained upward trend. In addition, the convergence of inflation towards the Governing Council's aim remained conditional on a substantial degree of monetary policy accommodation.
the MROs and the three-month LTROs would continue to be conducted as fixed rate tender procedures with full allotment for as long as necessary, and at least until the end of the last reserve maintenance period of 2019.
Furthermore, the Governing Council decided to publish each month, starting immediately, the expected monthly redemption amounts under the APP over a rolling 12-month horizon. It also decided to provide additional details on the implementation of the programme, reflecting the ECB's commitment to increase transparency further, via a separate press release ("Additional information on asset purchase programme").