Economics

Bundesbank Says the ECB Should Aim for a Lean Balance Sheet

German central bank says big overhaul of policies ‘premature’
ECB still needs to outline framework in its communication

Weidmann discusses German and global economic growth, trade concerns, and the ECB’s potential use of TLTROs.(Source: Bloomberg)

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By Piotr Skolimowski

February 27, 2019 at 3:18 PM UTC

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The Bundesbank said a lean balance sheet should be European Central Bank’s ultimate goal as it cautioned against a hasty overhaul of policy makers’ toolbox.

The German central bank is pushing back against suggestions by Finnish central bank chief Olli Rehn that the ECB should review the instruments it has at its disposal. Bundesbank President Jens Weidmann said last year the ECB should seek to interact with markets just as it did before the crisis.