- negative interest rates on bank deposits are a possible tool but there is risk of achieving opposite effect than planned
- abolishing privilege of zero-risk weighting for govt bonds as bank assets would help private sector credit
- German coalition accord contains elements that risk weakening pension sustainability, reducing labour flexbility
Buba chief and ECB governing council member Jens Wiedmann quoted on reuters from an interview given to Italian newspaper Il Sole 24 Ore published this morning.
I don’t want to speculate about future monetary policy moves. But rest assured we still have other tools at our disposal. We are ready and able to act.
