ECB’s Weidmann: Current ECB expansive monetary policy is appropriate

ECB governing council member and German central bank (Bundesbank) Chief Jens Weidmann is on the wires now, via Reuters, speaking on the ECB monetary policy at an event in Berlin.

Key Points:

Current ECB expansive monetary policy is appropriate

Historically low interest rates, alongside a flat interest rate structure, have a long-term impact on profitability of banks

The longer the low-interest rate continues, the greater the burden for German banks

Speed of normalization will depend on the economic environment but should not be at any cost

It’s legitimate to ask when rates will rise, given prospect of robust economic recovery in the euro-area