Home » ECB, Weidmann at full speed close to farewell launches inflation alarm contradicting Christine Lagarde

ECB, Weidmann at full speed close to farewell launches inflation alarm contradicting Christine Lagarde

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“We shouldn’t ignore the risk of too high inflation.” This is what Jens Weidmann, president of the Bundesbank and member of the Governing Council of the ECB said, who announced his resignation at the end of October, for personal reasons, as he himself reported. The resignation is scheduled for the end of the year.

In one of his latest speeches as a member of the European central bank and number one of the German central bank, Weidmann made no secret of his hawkish views, stating that “monetary policy should not remain anchored in its current stance. very accommodating, for too long. ”

“Inflation will probably take longer than previously predicted to subside”, the banker warned, also noting that, in the medium term, “it is possible that the inflation rate of the euro area will not fall below the target ( of the ECB) “- contrary to what was reiterated in the last Eurotower meetings by the number one Christine Lagarde – given that the central bank could be forced, due to pressure from governments worried about the Covid-19 pandemic,” to maintain monetary policy accommodating for longer than necessary “.

Lagarde also spoke today, on the occasion of the European Banking Congress event in Frankfurt.

“The ECB must not rush to launch a premature tightening” of monetary policy, said the chief executive of the central bank. “It is very unlikely that the conditions for raising rates will be met next year,” he reiterated.

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The euro broke the $ 1.13 threshold against the dollar today.

The eur-usd ratio lost 0.70% to $ 1.1291 at 14.50 Italian time. Over the past few hours, the single currency has capitulated as low as $ 1.1263, testing new lows of the past 16 months.
Over the course of this week, the euro lost 0.6%, compared to the + 0.5% rise in the same time frame as the Dollar Index, which had flown to the record of the last 16 months, around 95.530.

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