The Germans Are Revolting over ECB Policy

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

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam