Weidmann Says ECB Is Starting to Debate Changing Guidance

The European Central Bank is starting to debate whether to reflect the euro area’s improving economic prospects in its policy guidance, Bundesbank President Jens Weidmann said.

Speaking just hours before the ECB begins its self-imposed quiet period ahead of next week’s monetary policy meeting, Weidmann said the strengthening recovery makes it increasingly likely that the rise in the inflation rate isn’t “just a flash in the pan.” Inflation would still accelerate more than in the previous years even if some of the stimulus were removed, he said, adding the ECB should consider the impact of its policies on bank profitability.