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Bundesbank's Weidmann calls for steady ECB course, no 'hectic action': Der Spiegel

October 1, 2015 12:02 PM EDT

FRANKFURT, (Reuters) - Lower oil prices are a boost for Europe's economy so there is no need for more stimulus and the European Central Bank should hold a steady course, avoiding "hectic action," the head of Germany's central bank told Der Spiegel magazine on Thursday.

The ECB is buying 60 billion euros worth of assets a month to boost inflation but already said it may increase or extend the asset purchases as commodity prices drag inflation into negative territory.

"The drastic fall in energy prices leaves consumers and businesses with an extra 25 billion euros in Germany alone," Bundesbank chief Jens Weidmann said. "I currently don’t see why the central bank should add more to that."

Inflation turned negative last month and ratings agency Standard and Poor's said the ECB may have to extend its quantitative easing scheme by almost two years and more than double the programme to 2.4 trillion euros, given the low inflation environment and poor growth in emerging markets.

"My recommendation is that we not resort to hectic action but maintain a steady course," Weidmann, considered one of the ECB governing council's top hawks, told the German magazine.

(Reporting by Balazs Koranyi; editing by John O'Donnell)



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