Investing.com - The Bundesbank (Buba) president and European Central Bank (ECB) member Jens Weidmann said on Wednesday that he believed the ECB went too far in the measures taken at the last monetary policy meeting.
In a keynote speech to a finance forum in Lichtenstein, Weidmann, well-known for his hawkish stance on inflation, did admit that the ECB should be flexible about the time frame to raise inflation and should not hit the 2% inflation target “as soon as possible at any cost”.
He also pointed out that there was unity within the ECB on a need to act based on the revised forecast.
However, Weidmann warned about underestimating the risks of unconventional policy tools and overestimating the power of monetary policy in general in an echo of ECB calls for governments to act to aid in the economic recovery while restating his hawkish stance:
“Decisions overall went too far and the comprehensive set of measures did not convince me,” Weidmann concluded.