Markets

Bundesbank chief presses Europe to pursue reforms

BERLIN (AP) — Germany's central bank president is pressing struggling European countries to keep pursuing economic reforms and voicing concern that ultra-low interest rates could in the long term lighten pressure on politicians to stay the course.

Bundesbank chief and European Central Bank governing council member Jens Weidmann was quoted as telling Saturday's edition of German daily Bild that financial markets have calmed but "the crisis can flare up again." He said Europe needs "endurance and strong will" to see through its reform course.

The ECB has cut its main interest rate to a record-low 0.25 percent and may take further action amid economic weakness and low inflation. Weidmann, an anti-inflation hawk, said low rates are justified but cautioned that "low price pressure cannot be a warrant for loosening monetary policy at will."

Related Headlines

  • Falling inflation another headache for ECB

    On top of high unemployment and sluggish growth, the European Central Bank has a new headache: an unexpected drop in inflation. Most people think lower inflation is good news ... 

  • Mario Draghi

    ECB rate cut helps, won't transform economy

    The European Central Bank sent a message Thursday with a surprise cut in its benchmark interest rate: It's prepared to do more to fortify the euro alliance's economy. 

  • Europe on the hunt for 'zombie banks'

    In Europe, the zombie hunt is on. Not for undead humans, that is, but zombie banks — the walking dead among lenders, too financially troubled to loan money to an economy that ... 

  • Mario Draghi

    Slack economy raises stimulus question for ECB

    Alarmingly low inflation and weak growth have led officials at the European Central Bank to consider what had once seemed unthinkable: A Federal Reserve-like program of ...