ECB's policy dependent on price stability, expansionary policy to continue for now - ECB’s Weidmann

In an interview with the German Press, the European Central Bank (ECB) governing council member and Bundesbank President Jens Weidmann said that the ECB is currently not at point where it can end expansionary policy.

Commenting on the ECB’s monetary policy program, Weidmann said that ECB policy must end as soon as price stability is reached, even if higher rates worsen the sustainability of countries budgets. But for now, Weidmann said that eurozone economy needs more economic and fiscal policies to help growth.

The European Central Bank now holds more than €1.5tn of assets, which it has bought as part of purchases designed to kick-start the continent’s economy. Late last year, it announced it would extend purchases at the end of March, albeit reducing the rate from €80bn to €60bn a month.