FRANKFURT (Reuters) – The European Central Bank doesn’t need to ease policy further because measures taken to fight a pandemic-induced recession could boost the euro zone economy more than expected, ECB policymaker Jens Weidmann said.
Weidmann also expressed doubts about letting inflation overshoot after it has been low for too long, buying stocks or deliberately suppressing bond yields, in an interview with Boersen-Zeitung published on Wednesday.
The head of Germany’s Bundesbank and one of the ECB’s most conservative policymakers, Weidmann was countering calls for more stimulus from dovish rate setters like board member Fabio Panetta, in an internal ECB debate about the path ahead for a central bank that has missed its inflation goal for a decade.
“At the moment I see no reason to deviate from our assessment,” Weidmann said. “The monetary policy stance is currently appropriate.”
He argued the economy could perform better than the ECB’s baseline scenario,