Lorenzo Bini Smaghi, an ex-member of the ECB executive board, forecast easing was coming, and said the delay was due to attempts by Draghi to build unanimity for action among the Governing Council’s 24 members.
“I think he is gaining time for the argument to be won within the council,” Bini Smaghi told CNBC on Friday, from the Ambrosetti Forum in Italy.
“The ECB is a bit different as a central bank; it needs to create a consensus, because a move by the ECB with a consensus is more credible than a move with a divided council. I think he needs the decision to mature within the Governing Council.”
Despite the inaction, Draghi emphasized in his news conference on Thursday that the ECB could act swiftly to instigate “unconventional” policy measures if necessary. He also flagged that both quantitative easing and negative deposit rates had been discussed at this week’s meeting.
Bini Smaghi predicted that easing would materialize in “a couple of months”.
“I think he is preparing the markets to understand that action will take place,” Bini Smaghi said.