ECB faces another tough decision

The European Central Bank has faced difficult decisions in recent years. It faces another one when its Governing Council meets today in Estonia.

The decision will be a close one, at least it should be. And, once again, the eurozone’s central bank is likely to err on the side of significant prudence by avoiding any notable reduction in monetary stimulus — even though the balance of arguments increasingly points to a different policy path.

The argument for some reduction in what has been significant and prolonged ECB stimulus is based on six realities: