ECB stimulus appropriate, legitimate to think of exit: Weidmann | Reuters

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.

Updated Date: May 29, 2017 23:15 PM

Also Watch

Watch: Firstpost test rides the new Thunderbird 500X in Goa and walks you through the Royal Enfield Garage Cafe
  • Tuesday, April 17, 2018 Varun Dhawan on Shoojit Sircar's October, 5-star reviews and working with Anushka Sharma in Sui Dhaaga
  • Saturday, April 14, 2018 Ambedkar Jayanti: Re-visiting Babasaheb's ideals exposes fake Dalit politics of Rahul Gandhi and Congress
  • Monday, April 9, 2018 48 hours with Huawei P20 Pro: Triple camera offering is set to redefine smartphone imaging
  • Monday, April 16, 2018 Rajyavardhan Singh Rathore interview: Sports can't be anyone's fiefdom, we need an ecosystem to nurture raw talent

Also See