Central Bank of France Head doubts necessity of new QE
François Villeroy de Galhau became another senior representative of the European Central Bank, who expressed doubts about rationality of resumption of the asset purchase program.
In an interview with l’Agefi, the Chairman of the Bank of France, who is also a member of the Governing Council of the ECB, said that the question of QE resumption by the Central Bank « requires discussion. »
During the interview, Head of the Central Bank of France said that the ECB “has a quartet of powerful instruments,” among which he also called the asset purchase program. However, according to him, these instruments “should not play simultaneously or at the same pace.” At the same time, according to François Villeroy de Galhau, the ECB’s monetary policy « cannot work miracles. »
Investors expect that at the upcoming meeting in September, the ECB will announce a new reduction in interest rates and resumption of the asset purchase program.
One of the reasons for this expectation was the comments of the Board of Governors of the European Central Bank Olli Rehn in an interview with the Wall Street Journal in mid-August. However, shortly after the announcement came, a number of officials of the European Central Bank questioned the need to resume the purchase program.
photo@ The Jacques Delors Institute