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- ECB’s Governing Council member Weidmann: Governments should not expect central banks to keep interest rates low forever
ECB’s Governing Council member Weidmann: Governments should not expect central banks to keep interest rates low forever
- If price outlook requires it, there must be a turning point in terms of interest rates in Eurozone
- Price pressures in Eurozone are expected to remain subdued in coming years
- A shift in interest rate policy can take some time
- Governments should prepare for interest hikes and not pretend that their debt burden is easy to service
- ECB will not take into consideration public debt servicing costs if price stability mandates higher interest rates
- Economic outlook ultimately depends on how coronavirus infections develop after lockdown
- We expect Germany's debt burden during the pandemic to be smaller than during the 2008 financial crisis
- Second coronavirus wave is not expected to inflict more economic damage than first wave
- German government's emergency fiscal measures must be terminated once crisis unleashed by the pandemic is over
- 2021 general election in Germany should play no role in decision to end or extend economic rescue measures
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