Bundesbank President Jens Weidmann reiterated over the weekend that there was no need for change in ECB policy. He noted despite recent uncertainties, “the economic outlook is good”. And, “we are assuming a rise in price pressures and that’s the condition for monetary policy to normalize.” Also, “this isn’t a situation where prices are falling and we have to react now.”
ECB is set to meet again on monetary policy on June 5/6. Eurosystem staff macroeconomic projections will be released Also, details are expected on the third round of cheap loans to banks, the TLTRO III.
