Jens Weidmann isn’t convinced by the recent pullback in the eurozone’s inflation rate.
The Bundesbank president has become the latest senior German figure to call on the European Central Bank to bring an early end to its quantitative easing programme, arguing that the central bank should “take its foot off the gas” soon.
In an interview with German newspaper Die Zeit, Mr Weidmann said:
In my opinion, the point when the foot is not allowed to be left on the accelerator pedal, but is lifted slightly, is approaching.
The ECB has remained committed to buying €60bn worth of mostly government bonds each month until at least the end of this year.
Stronger growth and rising inflation across the continent had led to calls for ECB president Mario Draghi to be more confident about the currency area’s economic prospects, but Mr Draghi has stressed the fragility of recent price rises, which were driven mainly by volatile energy prices.
Data released last week appeared to support that outlook, with inflation falling sharply in March as the impact of rising oil prices eased.
However, Mr Weidmann said “the economic recovery in the euro area is robust and will continue”, which will increase pressure on prices.