(Bloomberg) -- European Central Bank officials insisted at their latest policy meeting that bond purchases are proportionate to the risks of adverse side effects on the economy, directly tackling the core argument of a German legal ruling against quantitative easing.
The account of the Governing Council’s June 3-4 teleconference showed that Chief Economist Philip Lane argued that both an older and more recent asset-purchase programs “were proportionate measures under the current conditions for pursuing the price stability objective, with sufficient safeguards having been built into the design of these programs to limit potential adverse side effects.”
The Governing Council agreed on Wednesday to release non-public documents to the German authorities to resolve a legal standoff over its 2015 sovereign-debt purchase program, according to officials familiar with the matter.
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