9 Dec 2013
ECB ready to act further - Buba's Weidmann
FXstreet.com (Bali) - Bundesbank's Chief and ECB Governing Council member Jens Wiedmann was quoted over the weekend by Reuters from an interview given to Italian newspaper Il Sole 24, saying the ECB are ready to act further if necessary to preserve price stability.
According to Wiedmann, as cited by Reuters: "Negative interest rates on bank deposits are a possible tool but there is risk of achieving opposite effect than planned." Wiedmann added that "abolishing privilege of zero-risk weighting for govt bonds as bank assets would help private sector credit." Also noting "I don’t want to speculate about future monetary policy moves, but rest assured we still have other tools at our disposal. We are ready and able to act."
According to Wiedmann, as cited by Reuters: "Negative interest rates on bank deposits are a possible tool but there is risk of achieving opposite effect than planned." Wiedmann added that "abolishing privilege of zero-risk weighting for govt bonds as bank assets would help private sector credit." Also noting "I don’t want to speculate about future monetary policy moves, but rest assured we still have other tools at our disposal. We are ready and able to act."