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ECB need not change rate guidance just yet, Weidmann says
Germany’s economic weakness may last longer than expected, but the European Central Bank need not formally delay a planned interest rate increase, Bundesbank President Jens Weidmann said on Wednesday. Growth in Germany, the euro zone’s biggest economy, stalled in the second half of last year, and concern is growing that the slowdown may not be as short-lived as earlier thought, a potential drag for the entire euro zone. The economy will grow below its potential of 1.5 percent, Weidmann said, confirming widespread expectations the ECB would slash growth and inflation projections at its meeting next Thursday. ... (full story)
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