The ECB’s chief economist warned central bankers from around the euro zone of the perils of delaying money printing, according to records of a January meeting that shed light on how policy makers ‘broadly’ agreed to launch the scheme.

Speaking to the January 22nd gathering of the ECB's Governing Council, which sets policy, Peter Praet addressed the risks of waiting before launching a scheme to print fresh money to buy government bonds, known as quantitative easing (QE).

Mr Praet’s presentation and the discussion afterwards convinced most of those present of the need for immediate action, although some argued that such a step should only be taken in ‘contingency’ situations.

In the document, which gives the clearest picture yet of how governors launched the scheme, officials reported Mr Praet as telling the meeting: “Due account would also need to be taken of the risks stemming from not acting at the present meeting, which might be higher than the risks stemming from acting.”

“A reversal of recent financial market developments could be expected if no further policy measures were announced,” officials write in the record of the meeting.

“The associated positive impact ... could be unwound and a higher degree of volatility or instability in the financial markets could create additional risks.”

In the end, most were in agreement. “There was a broadly shared view that the conditions were fully in place for taking additional monetary policy action at the current meeting,” they added.

This is the first time the ECB has published details of its discussions and brings it more in line with other major central banks like the US Federal Reserve, Bank of England and Bank of Japan.

But the exercise is sensitive. As a result, none of the 19 national central bank governors who attend are identifiable.

Reuters