Bundesbank chief Jens Weidmann to step down

Germany’s Central Bank said on Wednesday that President Jens Weidmann will step down at the end of December.
Weidmann is leaving the Bundesbank, which he has headed since May 2011, for personal reasons. He is stepping down five years before his term was due to end.

In a letter to the Bank’s staff, he wrote: “I have come to the conclusion that more than 10 years is a good measure of time to turn over a new leaf – for the Bundesbank, but also for me personally.”

Carsten Brzeski, Global Head of Macro at ING, said: “The next hours and days might reveal whether there are any reasons related to the European Central Bank’s current monetary policy stance and inflation assessment involved in Weidmann’s decision.”

Andrew Kenningham, chief Europe economist at Capital Economics, said: “Clearly, the Bundesbank is still likely to be among the more ‘hawkish’ national central banks in the euro-zone, given Germany’s traditional concerns about inflation and its position as a net creditor.

“But whereas Weidmann’s Bundesbank has often been at best a reluctant supporter of the consensus, this provides an opportunity for Germany’s policymakers to move further into the mainstream and perhaps to have more influence over the future direction of ECB policy – albeit only after the crucial December ECB Governing Council meeting has taken place.”

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