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Carsten Brzeski, chief economist at ING, notes that the ECB’s Executive Board German member, Sabine Lautenschläger has announced her resignation from office by the end of October, marking another shake-up of the ECB.

Key Quotes

“Lautenschläger has been on the ECB’s Executive Board since 27 January 2014, when she succeeded Jörg Asmussen, who back then left the ECB for a position in the German government. Her eight-year term would normally end in January 2022. Lautenschläger has been mainly responsible for setting up the Single Supervisory Mechanism (SSM). No reasons for her resignation were given in the press statement. So far, it is unclear what her motivation for resigning was.”

“Sabine Lautenschläger has been the most vocal and often the only member of the Executive Board to publicly criticize the ECB’s bond purchases.”

“The resignation of Lautenschläger also means that there will be two new Executive Board members this autumn, as Benoit Coeuré’s term will end at the end of the year.”

“In any case, if Lautenschläger’s resignation has really been driven by her opposition against the ECB’s latest decision to cut rates further and to restart Quantitative Easing, it would worsen the divide between hawks and doves.”