MNI: ECB Weidmann: Recovery Opens Opportunity to Normal MonPol

By Christian Vits

     FRANKFURT (MNI) - European Central Bank Governing Council member Jens

Weidmann said Friday the global economic recovery opens up a window of

opportunity for central banks to normalise monetary policy.

     "The recovery should be used for structural reforms and improved economic

growth dynamics establish perspectives to normalise monetary policy," Weidmann

said in a joint press conference with German Finance minister Wolfgang Schaeuble

in Washington. "The positive development is not only reflected in sentiment but

also in data such as global trade growth, which is the strongest in seven

years."

     Regarding the outlook for the ECB's policy, Weidmann said this depends in

particular on the price developments how to proceed.

     "I don't see the necessity permanently to open the throttle with respect to

monetary policy." That doesn't mean "full breaking", but it is about not to step

steadily on the gas, he stressed. 

     "Even after the run out of our net asset purchases, monetary policy will

remain extraordinarily loose."

     Weidmann also underlined that an agreement on Basel II is "within range. I

expect that an agreement will be achieved any time soon."

     Schaeuble noted that the German G-20 presidency had been a success and said

it was a positive feeling that Europe stood not in focus anymore when it comes

to economic concerns. "Still, this is no reason to rest," he added.

--MNI Frankfurt Bureau; +49 69 97782671; email: christian.vits@marketnews.com

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