German Bundesbank President Expects ECB to Diminish Economic Stimulus
Bundesbank President Jens Weidmann said that the European Central Bank should gradually reduce incentives, as economic growth in the euro area is expanding. The politician also noted that rapid and wide economic growth in the Eurozone will ensure inflation growth, and strong economic indicators of the euro area confirm the Council's conviction that inflation will approach 2% of the target.
Jens Weidmann, a constant critic of the ECB's ultra-modern policy, argued that even if generous bonded loans are terminated, the policy would remain acceptable, so stopping the quantitative easing would not stop the incentives, but simply return its intensity. Investors are now waiting for the ECB to complete its bond purchase program by 2.55 trillion by the end of the year, making sure that inflation will continue to grow, even slowly.
Earlier, the ECB signaled concern about the volatility of the euro against the dollar and its potentially negative impact on inflation, but even so, the politician noted that the impact of fluctuations in the euro's exchange rate on inflation has decreased in recent years.