by Isabella Bufacchi
Surprisingly, Bundesbank President Jens Weidmann has decided to step down after ten years at the helm of the German central bank. The 53-year-old asked Federal President Frank-Walter Steinmeier to be relieved of his post at the end of the year, Buba said.
In a letter to Bundesbank employees, Weidmann explained: “I have come to the conclusion that more than ten years is a good time to start a new chapter, for the Bundesbank and also for me personally.” No further explanations have been provided at the moment.
Addressing his colleagues on the ECB’s Governing Council, Weidmann advised not to look unilaterally at the risks of deflation, and not to lose sight of the potential risks of inflation.
The Bundesbank expects inflation to rise to 5% at the end of the year, and then fall from next year. The ECB considers this hike temporary.