ECB must monitor ‘rising risk appetite’ - ECB's Weidmann

FXStreet (Mumbai) - European Central Bank (ECB) Governing Council member Jens Weidmann said that the possibility of developing deflationary spiral in Europe remains very low, but warned about the dangers of the ECB's policy of keeping interest rates at historically low levels, as the current measures may increase desire for risk-on asset markets.

Key Quotes:

"In my view, monetary policy can't shrug its shoulders if there are signs of speculative excesses on asset markets,"

"The strong and in part rapid price increases on European stock and bond markets in the past weeks and months indicate a strongly rising risk appetite that we as central bankers must watch carefully."