ECB’s Weidmann: Recent EUR rise unlikely to threaten Eurozone economic expansion

ECB Governing Council member and Germany’s Bundesbank (Buba) President Jens Weidmann is out on the wires now, via Reuters, delivering a speech titled "Monetary Policy in the European Context" at the Monetary and Economic Policies on both sides of the Atlantic conference, in Frankfurt.

Key Headlines:

Given subdued inflationary pressure, an accommodative monetary policy stance remains appropriate.

Even after the net purchases have ended, monetary policy stance will remain loose.

Substantial net purchases beyond the announced amount do not seem to be required.

The recent appreciation of the euro seems unlikely to jeopardize the expansion of the Eurozone economy.

Inflation has not kept pace with economic expansion.

Expectations are that wage growth & inflation will gradually increase in keeping with a path towards the ECB’s definition of price stability.

The euro area grew even faster than the US economy last year and indicators show no sign of growth abating anytime soon.