Bundesbank President Jens Weidmann hit back at a Financial Times report that the bank is prepared to accept higher inflation rates, the Sueddeutsche Zeitung said, citing an interview.
Such reports are an “absurd discussion,” Weidmann is quoted as saying. Weidmann said that while German inflation may be higher than in the past, there is no danger as long as the European Central Bank keeps the euro-area average at just below 2 percent, according to Sueddeutsche.
The FT reported yesterday that the Bundesbank was showing signs of yielding to faster inflation.
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