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.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Craig Erlam
Latest posts by Craig Erlam (see all)
- OANDA Market Insights podcast (episode 36) - 10/19/2018
- Asia rebound leads europe higher - 10/19/2018
- Fed minutes rattle investors - 10/18/2018