Weidmann Says Any New ECB Measures Mustn't Be Counterproductive
- German member of Governing Council comments in TV interview
- Euro-area bank profitability suffering from ultra-low rates
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The European Central Bank must be wary of introducing fresh stimulus that could backfire and weaken the transmission of policy to the economy, Governing Council member Jens Weidmann said.
“What matters for us is that we don’t produce counterproductive effects,” Weidmann, who heads Germany’s Bundesbank, said in a Bloomberg Television interview in Frankfurt on Wednesday. “If through the effect on, for instance, the stability of banks our measures produce the opposite of what we want then it wouldn’t be smart to embrace them in the first place.”