Bundesbank President Jens Weidmann says the Eurosystem’s asset purchase programme should be discontinued this year if growth in consumer price inflation remains upbeat. Speaking to the German newspaper Frankfurter Allgemeine Zeitung, he said he is confident that the Eurosystem is on a path towards its target inflation rate of below, but close to, 2%.

In the opinion of Bundesbank President Jens Weidmann, monetary policy makers must not stand idly by at the first signs of speculative exaggerations in the asset markets. As part of their existing mandate, they have to also take into account the effects of financial imbalances on price stability.

 Bundesbank President Jens Weidmann believes that the French and Italian governments have finally accepted that reforms had been put on hold for too long. Implementation was now key, he said in an interview with the German weekly newspaper DIE ZEIT, adding that he sincerely hoped for success because both countries were extremely important for the stability of the euro area.

The longer euro-area monetary policy remains loose, the greater its risks. In this regard, Bundesbank President Jens Weidmann, speaking at the European Banking Congress in Frankfurt am Main, referred to excesses in the financial markets and problems being faced by life insurers. Moreover, "... we should not ignore the risk that fiscal policy could get used to the very low interest rates".

Bundesbank President Jens Weidmann has outlined his position on the ECB Governing Council’s most recent monetary policy decisions, which involve cuts to the monthly volume of asset purchases but offer no guidance as to when the purchases will finally be discontinued. "From my point of view, a clear end date to net purchases would have been appropriate," he said in a speech delivered in Paris.

Euro area central banks "can't take any consideration of government financing burdens" when normalising monetary policy, Bundesbank President Jens Weidmann says. "If price pressures rise, then we have to tighten our monetary policy," he told the Wirtschaftswoche business periodical.

The German economy's underlying cyclical trend is fairly robust. According to the projection, this year's economic growth is being additionally boosted by purchasing power gains resulting from renewed falls in crude oil prices and from an expansionary fiscal policy.

The Bundesbank posted a profit of €2.0 billion for the 2017 financial year, representing a year-on-year increase of €1.0 billion. Distributable profit amounted to €1.9 billion.

Bundesbank President Jens Weidmann believes that particular caution should be exercised when applying unconventional monetary policy measures. Speaking at the European Banking Congress in Frankfurt am Main, he noted that they "come with a different risk-reward calculus than standard instruments as they have more harmful side effects."

Bundesbank President Jens Weidmann has once again called for monetary policy in the euro area to be normalised when the inflation outlook calls for it. In an interview with the German Sunday newspaper Welt am Sonntag, he said he wouldn’t rule out higher inflation rates either. “In any event, I will strongly recommend keeping a close eye on the risk of an inflation rate that is too high and not only on the risk of one that is too low,” he commented.