Bundesbank President Jens Weidmann said ECB’s monetary stance is “currently appropriate” and “at the moment I see no reason to deviate from our assessment.”

Indeed, he argued that the economy could turn out to be better than ECB’s baseline scenario, because the EUR 750B EU recovery package wasn’t counted in, nor the EUR 100B fiscal measures of France.

Weidmann warned that Fed’s average inflation targeting could result in an asymmetric target. Central bank would be loath to cause a recession just to bring inflation back to an average after a period of overshooting.

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