The full story on Weidmann is out in the WSJ:
Many analysts expect that with inflation below the ECB’s 2% target, at 1.7%, and expected to fall further, an interest-rate cut is likely in May or June. Mr. Weidmann didn’t rule out the prospect, but cast doubt that it would do much good.
“We might adjust in response to new information,” however, “I don’t think that the monetary policy stance is the key issue,” he said.
It’s more tentative than the initial headline suggested but it certainly leaves the door open. It’s implied (but unclear) that it was in response to a question about a cut specifically in May or June.
Other comments are along the lines of recent rhetoric from other ECB governing council members — urging governments to do more.
“Everyone is asking what more can the central bank do instead of asking what other policy makers can contribute,” said Mr. Weidmann … “Monetary policy makers administer only cures the symptoms and that it comes with side-effects and risks.”
In any case, the market finds it easy to fall in love with the idea of the ECB cutting rates, so this could be a lasting theme.
