FRANKFURT: The head of the Bundesbank said on Friday that there was no reason to paint a gloomy economic picture and that existing monetary measures still needed time to work, remarks that play down the need for further action by the European Central Bank. "I see no reason to talk down the economic outlook and paint a gloomy picture," Jens Weidmann told a conference, whose participants included ECB President Mario Draghi.
"Our forecasts were not far off the mark." "We should also not forget that the monetary policy measures already taken still need time to fully feed into the economy," said Weidmann, who also sits on the ECB's policy-setting Governing Council.
He warned that of risks from loose monetary policy such as exuberant financial markets.
"The longer we stay in ultra-loose monetary policy mode, the less effective this policy will become and the more the attendant risks and side-effects will come into play."
Comments
Comments are closed.