FAST FIVE: Draghi Steamrolled Over Objections From ECB's Own Policy Committee When Restarting QE

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By contrast, restarting net purchases would provide a strong signal of the Governing Council's determination and willingness to act in the light of the current subdued inflation outlook and the potential risk of an unanchoring of inflation expectations.

A very large majority of members agreed with Mr Lane's proposal to lower the rate on the deposit facility by 10 basis points to -0.50%, which – together with the reinforced forward guidance – would act on the whole yield curve, especially in the short to medium-term segments, complementing the effects of net asset purchases on the long end of the curve.

According to the  FT, the bank's monetary policy committee, on which technocrats from the ECB and the 19 eurozone national central banks sit, advised against reviving the APP in a letter sent to Draghi and other members of the governing council in the days before the ECB meeting.

Not least of which because, as dissenters warned during the minutes, an open-ended APP could swiftly shrink the universe of eligible bonds, forcing the central bank to confront the possibility of buying more corporate bonds, or even equities.

It is one of the few occasions that the committee's advice has not been followed in the eight years since Mr Draghi became president, a council member said.

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