Top officials of the European Central Bank officials pondered on the threats of consumer price regression in the EU.
This concern encouraged them to support a purchase program based on bonds bigger than the offers made by the back’s lead economist for deliberation.
According to the ECB, the euro area was confronted with the challenge of an extended duration of very low inflation. This can increase the prospect of deflationary forces that can affect the economic environment.
Many council members of the ECB gave their nod to the €60 billion or $68.39 billion program in monthly government bond acquisition that begins next month and continue until September of 2016.
Publication of ECB deliberations revealed how the ECB interconnects with financial markets. The Bank of England, Bank of Japan and US Federal Reserve make known minutes of their respective policy meetings. This provides investors and the general public insight into how bank officials look at the economic landscape as well as policy options.
The €1 trillion bond-purchase plan of the ECB indicated the largest and probably most divisive stimulus measure in the institution’s history. It also placed the ECB in the cluster of other major central banks that adopted quantitative easing.
Consumer prices in the bloc declined 0.6 per cent last month which is the most significant deterioration in over five years.
