The rebellious voices of the ECB after the last ultra-accommodative meeting. By Esther Bourgeois

The European Central Bank (ECB) made its accommodative policy clear yesterday at its last meeting. So much so that the markets, seeing that Lagarde’s are not going to get very tough for a while, have calmed down and investors have breathed.

The monetary authority announced a change in its symmetric inflation target for the first time in 18 years, but has maintained rates, so experts have described its position as extremely ‘dovish’ after the meeting on Thursday.

However, it does not seem that within the ECB everyone is rowing in unison. In fact, just today, and as reported by CNBC and echoed by the . news agency, European Central Bank (ECB) Governor Pierre Wunsch, acknowledged feeling uncomfortable with the new orientation of the central bank, which the financial markets have interpreted as a commitment not to raise interest rates for “five or six years.”

In fact, Wunsch was one of two ECB governors who disagreed with Thursday’s decision to delay the timing of any rate hike, which is now off the table until inflation is within sight of the 2% target for growth. central bank of the euro zone.

The expert indicated that this disagreement should not be “dramatized”, but went on to say that the ECB has tied its hands for years and could face questions about its independence from governments.

“I guess it boils down to the kind of commitment that can be made over a possibly long period of time – we’re talking maybe five or six years, if you look at market expectations,” Wunsch said in an interview with CNBC arguing: “I did not feel comfortable making a commitment for such a long period.”

And the governor would have liked to have an “escape clause” that would allow the ECB to raise rates if it faced risks such as fiscal dominance, that is, for the central bank to establish its own policy to adapt to needs. financing of a specific government.

“We can face fiscal domain issues and financial domain issues,” he points out.

With regard to the PEPP, the ECB’s extraordinary pandemic program, and while the Governing Council continues to expect that purchases made during the current quarter will be carried out at a significantly higher rate than during the first months of the year, Wunsch considers that it should be eliminated next March based on current economic projections.

“The ECB should avoid the cliff effect when the PEPP ends and should be flexible in the transition,” he considered.

Esther bourgeois

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