European Central Bank Governing Council member Jens Weidmann spoke over the weekend with Germany’s Welt am Sonntag newspaper.
Says that if the inflation outlook indicates a sustainable rise… “We have to make it clear again and again that we will tighten monetary policy if the price outlook calls for it.”
His comments were in the context of Euro zone countries being now saddled with more debt as fiscal policy ramped up to cope with the coronavirus pandemic. Increased debt servicing costs are not a reason to stop the ECB from raising rates if need said Weidmann, president of Germany’s Bundesbank.
- “I do not rule out higher inflation rates”