ECB's Weidmann: Important that monetary policy remains expansionary

Jens Weidmann, European Central Bank (ECB) Governing Council member and Bundesbank President, said on Thursday that it's important for the ECB's monetary policy to remain expansionary, as reported by Reuters.

Additional takeaways

"This time, the economic fallout is likely to be less severe than in spring."

"Negligent to rule out we might have to deal with inflationary forces again in future."

"Explicitly symmetric target formulation would be clearer, easier to understand than the current wording."

"We need to make it very clear we are not going to place monetary policy at the service of fiscal policy."

"The existing medium-term orientation provides a high degree of flexibility."

"Inflation should really include owner-occupied housing costs."

Market reaction

The EUR/USD pair showed no immediate reaction to these comments and was last seen gaining 0.9% on a daily basis at 1.1830.