The European Central Bank won’t be able to protect governments from higher borrowing costs if inflation spikes, Bundesbank President Jens Weidmann cautioned in an interview published Sunday.
- Hannah Brenton
- Politico
“The ECB is not there to take care of the solvency security of the states,” the German central bank chief told Welt Am Sonntag .
Weidemann, who sits on the ECB’s Governing Council, said the European Central Bank would have to tighten its monetary policy if inflation rises sustainably.
“We will then not be able to take into account the financing costs of the states,” he told the…