FOREX TradingCharts.com

Financial News: Bundesbank's Weidmann Says Climate Goals 'Overburden' Cent

Bundesbank's Weidmann Says Climate Goals 'Overburden' Central Banks

10/29/2019 - 10:41:00 (RTTNews)

(RTTNews) - Central banks cannot be expected to play the role of a crisis fighter for the climate, Bundesbank President Jens Weidmann said Tuesday, adding that involving excessively in such issues could risk their independence.

"A monetary policy that explicitly pursues environmental goals threatens to become overburdened," the German central bank chief said in a speech in Frankfurt.

"And in the long term, their independence could be called into question." Weidmann thus adopted a stance that is in opposition to the European Central Bank President designate Christine Lagarde who plans to explore sustainable finance measures such as buying green bonds under the central bank's asset purchase scheme. Lagarde is set to replace Mario Draghi as ECB President, when his term ends on October 31.

"I see demands for a green monetary policy, for example in the form of a "Green QE" or a targeted privilege within the collateral framework, very critically," Weidmann said. "These [Climate Change] are political issues that have to be answered by elected governments and parliaments. Such decisions should not be made by central banks, because they are not democratically legitimized," he added. Further, Weidmann pointed out that moves such as buying green bonds for preference would contradict "market neutrality". The policymaker also warned of conflicting goals once the ECB decides to stop or reduce asset purchases. At that time, theer would be calls to continue green bond buying, he said. "Bond purchases should be limited to exceptional situations in Eurosystem monetary policy and should by no means become a permanent instrument," Weidmann said. Central banks can make a contribution to a more sustainable financial system, the central banker said. "Green finance can complement but not replace good and smart climate policy," he concluded. "It is and remains the task of the democratically legitimized politics to determine the necessary change and to overcome the crisis."

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2019 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


U.S. Consumer Sentiment Improves Much More Than Previously Estimated In November (03 hr(s), 32 min(s), 10 sec(s) ago)
(RTTNews) - With consumers more optimistic about the future than previously estimated, the Univers ...Full Story»

ECB's Lagarde Seeks New Policy Mix (05 hr(s), 11 min(s), 10 sec(s) ago)
(RTTNews) - Eurozone needs a new European policy mix that focuses on boosting public investment to ...Full Story»

German Economy Skirts Recession As Estimated (06 hr(s), 19 min(s), 10 sec(s) ago)
(RTTNews) - The German economy avoided a technical recession in the third quarter, as initially es ...Full Story»

Eurozone Private Sector Logs Subdued Growth (06 hr(s), 42 min(s), 10 sec(s) ago)
(RTTNews) - Euro area private sector grew at a much slower pace in November, indicating spillover ...Full Story»

UK Private Sector Contracts Most Since Mid-2016 (07 hr(s), 08 min(s), 10 sec(s) ago)
(RTTNews) - The UK private sector contracted at the fastest pace in more than two years in Novembe ...Full Story»

Latvia Producer Prices Fall In October (07 hr(s), 26 min(s), 10 sec(s) ago)
(RTTNews) - Latvia producer prices declined in October, led by a sharp fall in prices for the expo ...Full Story»

Taiwan Jobless Rate Eases Further (08 hr(s), 38 min(s), 10 sec(s) ago)
(RTTNews) - Taiwan's unemployment rate dropped for a second consecutive month in October, figu ...Full Story»

Eurozone Private Sector Remains Close To Stagnation (09 hr(s), 12 min(s), 10 sec(s) ago)
(RTTNews) - The euro area private sector remained close to stagnant for a third consecutive month ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

U.S. Consumer Sentiment Improves Much More Than Previously Estimated In November

11/22/2019 - 10:19 AM (RTTNews)
(RTTNews) - With consumers more optimistic about the future than previously estimated, the Univers ...Full Story>>

ECB's Lagarde Seeks New Policy Mix

11/22/2019 - 08:40 AM (RTTNews)
(RTTNews) - Eurozone needs a new European policy mix that focuses on boosting public investment to ...Full Story>>

German Economy Skirts Recession As Estimated

11/22/2019 - 07:32 AM (RTTNews)
(RTTNews) - The German economy avoided a technical recession in the third quarter, as initially es ...Full Story>>

Eurozone Private Sector Logs Subdued Growth

11/22/2019 - 07:09 AM (RTTNews)
(RTTNews) - Euro area private sector grew at a much slower pace in November, indicating spillover ...Full Story>>

UK Private Sector Contracts Most Since Mid-2016

11/22/2019 - 06:43 AM (RTTNews)
(RTTNews) - The UK private sector contracted at the fastest pace in more than two years in Novembe ...Full Story>>
Copyright © 2019. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.