Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  News


Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 
The feature you requested does not exist. However, we suggest the following feature:

Time may be nearing for ECB stimulus exit - Weidmann

share with twitter share with LinkedIn share with facebook
share via e-mail
06/25/2017 | 07:02am CEST
Deutsche Bundesbank (German Federal Bank) President Weidmann attends the ‘G20 Africa Partnership – Investing in a Common Future’ Summit in Berlin

The time may be nearing for the European Central Bank to start discussing the end of unprecedented stimulus as growth and inflation are both moving in the right direction, Bundesbank president Jens Weidmann told German newspaper Welt am Sonntag.

Weidmann, who sits on the ECB's rate-setting Governing Council, also said that the bank should not make any further changes to the key parameters of its bond purchase scheme, comments that signal opposition to an extension of asset buys since the ECB will soon hit its German bond purchase limits.

Hoping to revive growth and inflation, the ECB is buying 2.3 trillion euros worth of bonds, mostly government debt, a scheme known as quantitative easing and long opposed by Germany, Europe's biggest economy.

The purchases are set to run until December and the ECB will decide this fall whether to extend it in order to boost inflation further or to wind it down, or taper.

"As far as a possible extension of the bonds-buying programme goes, this hasn't yet been discussed in the ECB Council," Weidmann told the newspaper in an interview.

"But in my view, if the solid economic development and price development continues, as expected, it would be time to take a look at an exit from the very easy monetary policies," he said.

Having flirted with deflation for years, price growth is now firmly above 1 percent but will miss the ECB's target of almost 2 percent for years to come, its staff projections show.

A key issue is that self-imposed rules allow the ECB to hold up to one third of each country's debt and given Germany's relatively low debt burden, it is likely to hit this level in the first half of next year.

Any meaningful extension would therefore require a change in the programme's rules, a move Weidmann said he firmly opposed.

A key risk to curbing stimulus may be pressure from governments since any rise in borrowing costs threatens to blow a hole in national budgets after years of rock-bottom borrowing costs.

"This can lead to a political pressure on the Governing Council to continue the loose monetary policies longer than necessary," Weidmann said.

Weidmann, touted a potential successor to ECB President Mario Draghi when his term ends in late 2019, also said that Germany was not in need of stimulus as employment and capacity utilisation were already high.

(Reporting by Balazs Koranyi; Additional reporting by Erik Kirschbaum in Berlin; Editing by Ros Russell)

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news
Date Title
07:02a Time may be nearing for ECB stimulus exit - Weidmann
06:39a MINISTRY OF ECONOMIC AFFAIRS AND FINANCE OF IS : INTA gains 5k billion tomans via fighting tax evasion
06:38a PRIYANKA CHOPRA : This is how you fight rape stigma - The Standard
06:11a INFOSYS : Automation is the Future of It
06:10a HDFC BANK : CAIT to Organise 100 GST Clinics Across India
06:10a INFOSYS : Finalising System for Capital Allocation Plan
06:09a AKRITAS S A : Political stupidity is clearly hereditary
06:06a BEIJING ENTERPRISES : Anichebe Joins Beijing Enterprises
06:05a Brad Nierenberg On Best Practices For Optimized Customer Engagement
06:05a Marcus Hiles Supports Texas Pro-Growth Policies
Latest news
Hot News 
18.96%IMAGINATION TECHNOLOGIES : U.K. Chip Designer Puts Itself on Block -- WSJ
-5.33%GLOBAL LOGISTIC PROPERTIES : Says It Remains in Talks With Shortlisted Bidders
-12.28%BlackBerry misses sales forecasts, shares tumble
-1.23%Harley-Davidson Discussing Purchase of Italian Rival Ducati From VW
1.40%BOEING : Is Top Seller at Paris Air Show -- WSJ
Most Read News
06/24 BEIJING ENTERPRISES : Anichebe joins Chinese side Beijing Enterprise
06/24 Internal dossier criticises Audi top management - Bild
06/24 HB GRANDI : A fantastic ship
06/24 IREN : Engineering services
06/24 EXPONENT : 9th International Fresenius Conference – Pesticide Residues in Food
Most recommended articles
06/24 Lufthansa wants to help, not take over, Air Berlin - Bild
06/24DJMARKET SNAPSHOT : Want To Know Where The Stock Market's Headed Over The Next 6 Months? Don't Ask OPEC
06/24 RAYTHEON : CEO of Raytheon's Forcepoint eyes IPO - Boersen-Zeitung
06/24 Volkswagen's Slovak union says close to wage deal to end strike