Bundesbank: No need for ECB stimulus move

Bundesbank president Jens Weidmann said there is no need for the ECB to expand monetary stimulus, and argued that sovereign-debt purchases are problematic even if slumping oil prices cause deflation.

“Such a development initially requires no monetary policy response, as long as no second-round effects are to be seen,” he said.

“There’s a whole row of economic reasons that speak against government-bond purchases, even before you consider the legal question of whether they’re compatible with the ban on monetary financing.”