Relations between the European Central Bank (ECB) and Germany’s leaders are becoming increasingly strained as differences grow over the increasingly dovish path taken by the central bank.
The criticism in Germany targeted at the ECB and its President, Mario Draghi, has reached fever-pitch since the ECB brought out an even bigger bazooka from its arsenal of monetary policy strategies to try to stimulate growth and inflation in the anemic euro zone. As well as cutting its main interest rates, it expanded its massive bond-buying program to 80 billion euros ($90.3 billion) a month and added corporate bonds into the mix.
The ECB is expected to be far less dramatic when it announces its latest rate decision on Thursday but it is no having to contend with growing criticism from close to home in Germany where officials say its policies are hurting the economy.
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Craig Erlam
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