ECB President Mario Draghi speaking at an event in Frankfurt on Friday sent a strong reminder to markets that the ECB will form a strong consensus at the December meeting, despite facing dissent from some of the hawkish members on the board including Bundesbank Chief Jens Weidmann. Draghi said that the ECB would take whatever action it can with all the available instruments under its mandate. Earlier in the day, Bundesbank Chief Weidmann noted that the drop in energy prices was an indirect economic stimulus rather than being a harbinger of deflation and was convinced that low oil prices were driving the low rates. Overall, Weidmann's comments come starkly in opposition to most other ECB members including Draghi. A similar theme had played out earlier this year when Weidmann was a staunch opponent towards using asset purchases as a monetary policy tool but eventually gave in to the larger consensus.
ECB Will Do What It Must
Daily Analysis - 23/11/2015