ECB board members express regret over QE stimulus
Cipollone says unwinding balance sheet thwarts rate cuts, while Schnabel wants “less activist” bank
European Central Bank board members have said they now have a clearer picture about the impact of past quantitative easing (QE).
In a speech on an MNI Connect webcast on February 18, Piero Cipollone argued that the bank would have to strike a careful balance between rate cuts while it proceeded with quantitative tightening (QT), as the two instruments had opposing effects on inflation.
A day later, Isabel Schnabel told the Financial Times that although asset purchases had stabilised markets, they
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