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ECB policy largely powerless in reviving growth: Germany's Weidmann
December 16, 2016 / 9:28 AM / a year ago

ECB policy largely powerless in reviving growth: Germany's Weidmann

FRANKFURT (Reuters) - Monetary policy is largely powerless in reviving euro zone growth and the responsibly lies with governments, Bundesbank President Jens Weidmann said on Friday, warning against overburdening central banks.

Central Bank (Bundesbank) Chief Jens Weidmann attends a press conference after the Franco-German Financial Council meeting in Berlin, Germany, September 23, 2016. REUTERS/Axel Schmidt

Weidmann, a long-time critic of European Central Bank’s unprecedented stimulus, also said that giving central banks too many responsibilities, such as over banking supervision and financial stability, could create tensions between conflicting objectives.

Weidmann, who sits on the ECB’s rate-setting Governing Council, has for years opposed the bank’s bond buying programme, known as quantitative easing, and voted last week against expanding it to 2.3 trillion euros.

Reporting by Balazs Koranyi Editing by Jeremy Gaunt

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