ECB’s Weidmann – cheap money cannot spur sustained growth
BERLIN, Sept 15 (Reuters) – European Central Bank policymaker Jens Weidmann took aim at the ECB’s monetary stimulus in a German newspaper interview, saying a loose policy stance cannot support sustained growth and creates risks over time.
The ECB earlier this month cut its growth and inflation forecasts, warning of possible further trouble from China and paving the way for an expansion of its already massive 1 trillion-euro plus asset-buying programme.
"All the cheap money cannot ignite sustained growth and builds bigger risks over time, for example for financial stability," Weidmann told the Sueddeutsche Zeitung newspaper.
Weidmann, who is president of Germany’s Bundesbank, said the German economy was doing well now but faced long-term risks.
"In the long-term, Germany in any case faces considerable challenges, if one thinks for example of the ageing society, increasing competition from emerging markets or the energy (policy) change," he said.
Turning to immigration in Germany, he said this could pose an opportunity to respond to the country’s ageing population.
"Given the demographic change, Germany needs additional manpower to be able to keep up its prosperity," he said.