Bundesbank’s Weidmann defends ECB from critics

MUNICH The head of Germany’s Bundesbank defended the European Central Bank from critics within his own country on Friday, saying a central bank’s job is not to guarantee savers’ returns but to achieve its inflation target.”(Central banks) cannot promise minimum returns for savers because they must focus on the broader economic impact of their monetary policy,” Weidmann told an audience in Munich.

He added: “Long term rates depend equally on long-term inflation expectations and on the economy’s growth prospects. Interest (income) for investors doesn’t fall from the sky, it must be earned by companies.”

(Reporting by Joern Poltz; Writing by Francesco Canepa; Editing by Balazs Koranyi)


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