FRANKFURT, July 1 (Reuters) - The European Central Bank is working on moving away from its ultra-easy monetary policy, Jens Weidmann, head of Germany’s Bundesbank and a member of the ECB’s rate-setting body, said on Saturday.
Investors are watching out for any sign that the ECB may reduce its stimulus, which includes massive bond purchases and ultra low rates, after a hint in that direction by President Mario Draghi boosted the euro and bond yields this week.
“It will hopefully come and we’re working on that, we’re also discussing it,” Weidmann, a long-standing critic of the ECB’s stance, told an audience at the Bundesbank’s open days.
He said the issue for rate setters was when to show resolve and normalise the ECB’s policy in the face of pressures to keep it easy longer than necessary. (Reporting By Frank Siebelt; Writing by Francesco Canepa; Editing by Andrew Heavens)