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ECB’s Holzmann Says Draghi’s QE Policy Is Counterproductive

Boris Groendahl
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ECB’s Holzmann Says Draghi’s QE Policy Is Counterproductive

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Several members of the European Central Bank’s Governing Council are against the ECB buying more bonds, the Austrian central bank Governor Robert Holzmann said.

“The view was that the attempt to inject even more liquidity isn’t good, even counterproductive,” Holzmann told Austrian public TV broadcaster ORF in an interview. “Several governors didn’t consider this proposal the right policy for the purpose.”

There are concerns about the economic impact of the policy, which ECB President Mario Draghi flagged in a speech at a conference in Sintra, Portugal, without first discussing it in the Governing Council, Holzmann said.

“Draghi’s behavior wasn’t that of a person inclined to consider divergent views,” Holzmann said.

Holzmann was among several governors who dissented publicly with the policy after the ECB’s last policy meeting. Bundesbank President Jens Weidmann, Draghi’s most prominent and longstanding critic, previously told Germany’s tabloid Bild newspaper that the ECB delivered a package that was out of proportion with an economic prognosis that “isn’t that bad.” Dutch Governor Klaas Knot also released a statement explaining his opposition.

To contact the reporter on this story: Boris Groendahl in Vienna at bgroendahl@bloomberg.net

To contact the editors responsible for this story: Chad Thomas at cthomas16@bloomberg.net, James Amott

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