Speaking in an interview with Frankfurter Allgemeine Sonntagszeitung published this morning the Bundesbank president and ECB governing council member has repeated his opposition to the widely anticipated ECB plan to buy sovereign bonds
Yesterday Weidmann received expected strong backing from his fin min Schaeuble which Eamonn reported here and referring to the fall in oil prices Weidmann says
An economic stimulus program has been handed to us, why should we add to that with monetary policy?
while adding additional comments that pressure from financial markets should not determine the ECB’s moves on buying up sovereign bonds.
I am irritated by one question dominating the recent public debate: when will you finally buy?
He spoke in positive mode about the outlook for Germany despite the BUBA this month halving its growth forecast for Germany to 1.0% for next year. It also cut its prediction for 2014 growth to 1.4% from 1.9% in June.
As things are at the moment and if oil prices remain this low, inflation will be lower than expected, but growth will be better
adding
The situation in Europe isn’t as bad as some people believe
Let’s hope he’s right
Weidmann- Remains upbeat about the German and Eurozone outlook
