ECB's Governing Council member Weidmann: ECB should not lock in very loose monetary policy for too long

Market news

1 September 2021

ECB's Governing Council member Weidmann: ECB should not lock in very loose monetary policy for too long

Risks are clearly skewed towards higher inflation

Temporary factors causing inflation spike could lead to higher wages and inflation expectations

Expansionary monetary policy still appropriate but PEPP must end when the emergency is over

PEPP should be reduced step by step, should not end abruptly

PEPP's flexibility should be reserved for exceptional circumstances

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