ECB's Weidmann: Hard to reconcile yield curve control with market economy

The European Central Bank's policy stance is still appropriate, Jens Weidmann, European Central Bank (ECB) Governing Council member and Bundesbank President, told Boersen Zeitung on Wednesday, as reported by Reuters.

Additional takeaways

"If we relaxed Public Sector Purchase Programme (PSPP) constraints across the board, there could be legal problems."

"Can't reconcile buying stocks with ECB's mandate, independence."

"Hard to reconcile yield curve control with a market economy."

"Average inflation targeting could end up being asymmetric, with higher inflation than originally thought."

Market reaction

The EUR/USD pair showed no immediate reaction to these comments and was last seen gaining 0.33% on the day at 1.1772.