ECB’s Weidmann: Must tighten policy if needed to counter inflation
|The European Central Bank (ECB) must hike rates if it needs to counter inflationary pressures, the central bank policymaker Jens Weidmann said in an interview with the Welt am Sonntag newspaper.
Key quotes
"The ECB is not there to take care of the solvency protection of the states.”
"We have to make it clear again and again that we will tighten monetary policy if the price outlook calls for it.”
"We cannot then take into account the financing costs of the states.”
"I do not rule out higher inflation rates.”
"In any case, I will insist on keeping a close eye on the risk of an excessively high inflation rate and not only on the risk of an excessively low inflation rate."
"Central bank would first end its PEPP emergency bond purchase programme before scaling back its APP purchase plan.”
"The sequence would then be: first we end the PEPP, then the APP is scaled back, and then we can raise interest rates.”
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