Updates News 2021: Bundesbank’s Weidmann Quits With One Last Inflation Warning

Weidmann, a longstanding critic of the ECB’s easy-credit policy, said he was resigning for personal reasons. But his farewell message still warned about inflationary risks.

“I have come to the conclusion that more than 10 years is a good measure of time to turn over a new leaf – for the Bundesbank, but also for me personally,” the Bundesbank quoted Weidmann as saying.

Weidmann, who was among a handful of policymakers that opposed the ECB’s pledge in July to keep interest rates at record lows until inflation stabilises at 2%, warned it should not lose sight of the risk that prices might rise too fast.

“It will be crucial not to look one-sidedly at deflationary risks, but not to lose sight of prospective inflationary dangers either,” he said in Wednesday’s statement.

The ECB has battled with sluggish price growth for a decade but inflation has risen sharply in recent months and came in at 3.4% in September, data showed on Wednesday.

Weidmann has headed the Bundesbank since May 2011, taking over as the euro zone’s debt crisis raged.

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