ECB policymaker Jens Weidmann came forward to comment on the issue of monetary policy easing. He personally argued that the European Central Bank (ECB) should not loosen monetary policy as the measures taken to boost the European zone economy were more than enough.
Weidmann, who is the head of the German Bundesbank and one of the conservative ECB policymakers, rejected the proposal to increase more financial stimulus and reiterated the fact that the central bank had failed to achieve its inflation target for a decade.
Weidmann even argued that the economy could perform better than the ECB's basic scenario, which put growth at 3.2% and inflation at 1.3% in 2022. This is because the projections do not include the 750 billion euro package agreed by European Union leaders on summer and the easing of French fiscal policy worth 100 billion euros.
At the same time, he warned that the ECB would face problems with the German constitutional court if the ECB continued with very flexible conditions
Pandemic Emergency Purchase Program.
The ECB is currently in the process of reviewing the inflation target below 2% as one decade has still failed to be achieved.
