European Central Bank policymaker and Banque de France Governor François Villeroy de Galhau said he was against a decision to resume quantitative easing delivered by the bank Sept. 12 under a stimulus package to spur growth in the eurozone economy, joining his Dutch, German and Austrian peers in publicly dissenting against the move.
"I was not in favor of the resumption of net asset purchases at this time because I thought that further purchases are unnecessary right now — and I stress right now — given the very low levels of both long-term interest rates and term premia," de Galhau said at an event at the Paris School of Economics, according to Bloomberg News and Reuters.
Villeroy added that lowering interest rates and changing forward guidance were a "powerful combination" by themselves to accelerate growth.
He had previously cast doubt over quantitative easing resumption, saying that the ECB should not necessarily use all available policy tools, echoing voices from De Nederlandsche Bank NV Governor Klaas Knot, who has been repeatedly opposing it.
Oesterreichische Nationalbank Governor Robert Holzmann previously called the move a "mistake" while Deutsche Bundesbank Governor Jens Weidmann said the ECB went too far in easing.
Outgoing ECB President Mario Draghi cautioned a day before that policymakers' disapproval of the bank's decision in public makes policies less effective. The ECB is ready to "adjust all of our instruments," Draghi said, as he warned that a rebound in the eurozone economy is not imminent.
