ECB divisions point to half-hearted QE

The objections of German Bundesbank President Jens Weidmann to the prospect of an ECB quantitative easing programme including government bond purchases are unlikely to prevent such a programme being implemented in the next few months. But along with the broken state of the banking sector and the already low levels of government bond yields across the currency union, the divisions on the Governing Council are another reason to believe that ECB QE will not be big and powerful enough to drive a decent recovery in the euro-zone or eradicate the dangers of deflation.