(Financial Times) – The head of Germany’s Bundesbank has warned the European Central Bank against straying beyond its remit, as the bloc’s central bankers gathered on Wednesday night to discuss a possible plan to re-start intervention in government bond markets.
Jens Weidmann, Bundesbank president, said the ECB’s independence “requires it to respect and not overstep its own mandate” to guard against inflation.
Policy makers “overestimate the central bank’s possibilities” when calling on the ECB to support economic growth, create jobs and stabilise the banking system, Mr Weidmann said.
The Bundesbank had a greater say than many of the bloc’s central banks because Germany’s monetary authority was “the largest and most important central bank in the euro system”, he said.
http://edition.cnn.com/2012/08/01/business/bundesbank-ecb/index.html
