Bundesbank President and hence ECB board member Jens Weidmann in an interview with a German newspaper.

  • We expect Germany's debt burden during the pandemic to be smaller than during the 2008 financial crisis
  • says he doesn't expect second coronavirus wave to inflict more economic damage than first wave
  • German government's emergency fiscal measures must be terminated once crisis unleashed by the pandemic is over
  • says 2021 general election in Germany should play no role in the decision to end or extend economic rescue measures
  • governments should not expect central banks to keep interest rates low forever
  • if price outlook requires it, there must be a turning point in terms of interest rates in euro zone
  • price pressures in euro zone are expected to remain subdued in coming years
  • a shift in interest rate policy can take some time
  • governments should prepare for interest hikes and not pretend that their debt burden is easy to service
  • ECB will not take into consideration public debt servicing costs if price stability requires higher interest rates
  • economic outlook ultimately depends on how covid infections develop after lockdown
Bundesbank President and hence ECB board member Jens Weidmann in an interview with a German newspaper.

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Net optimism on the economy from head of the BUBA but not signalling any imminent change to policy.

EUR is sitting just above 1.2300 as I update.