FRANKFURT (Reuters) - European Central Bank governors were broadly in agreement that strong action was needed when they met to loosen monetary policy on March 9 and 10, a public record of their meeting revealed on Thursday, but some disagreed on elements of the package.
The minutes of the meeting show that governors from around the euro zone had been told that the global economic outlook had got worse and widely supported action although some had reservations.
“While, overall, members widely agreed on the need for comprehensive policy action, different views were expressed with regard to the individual components of the proposed package,” officials wrote in their account of the gathering.
Citing the example of the charge imposed on banks for parking money with the ECB, the minutes said: “Concerns were raised about possible undesirable side effects that could arise from moving further into negative territory. A further cut ... could unduly increase the pressure on banks’ profitability.”
The ECB cut its three interest rates, expanded its asset purchases by one third and launched a new round of cheap loans for banks at its March meeting.
Reporting By John O'Donnell; Editing by Francesco Canepa