FRANKFURT The European Central Bank's utra-loose monetary policy is "still appropriate in principle" but it is legitimate to discuss the timing of an exit as inflation recovers, Jens Weidmann, Germany's representative on the ECB's Governing Council, said on Monday.
"Given the dampened price pressure, an expansive monetary policy is still appropriate in principle," Weidmann, who heads Germany's powerfull Bundesbank and has been the most outspoken critic of the ECB's policy in recent years, said at a reception in Berlin.
"But as a result of the economic recovery and a predicted inflation rate of almost 2 percent in 2019, it is quite legitimate to ask when the Governing Council should consider monetary policy normalization", Weidmann added.
The ECB Governing Council meets next Thursday in Tallinn to asses its policy stance. ECB President Mario Draghi said on Monday that the euro zone still requires substantial stimulus, even if growth in the 19-member currency bloc has improved. (Reporting by Andreas Framke; Editing by Francesco Canepa)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Your guide to the latest seat tally, live updates, analysis and list of winners for Lok Sabha Elections 2019 on firstpost.com/elections. Follow us on Twitter and Instagram or like our Instagram or like our Facebook page for updates from all 542 constituencies on counting day of the general elections.
Updated Date: May 29, 2017 23:15:04 IST