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 - 10:49:00 (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, there 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


Japan Inflation Data Due On Friday (08 min(s), 15 sec(s) ago)
(RTTNews) - Japan will on Friday release October nationwide numbers for consumer prices, highlight ...Full Story»

Japan Overall Consumer Prices Rise 0.2% On Year In October (13 min(s), 15 sec(s) ago)
(RTTNews) - Overall consumer prices in Japan were up 0.2 percent on year in October, the Ministry ...Full Story»

U.S. Leading Economic Index Drops For Third Straight Month In October (08 hr(s), 06 min(s), 15 sec(s) ago)
(RTTNews) - A report released by the Conference Board on Thursday showed a modest decrease by its ...Full Story»

U.S. Existing Home Sales Jump More Than Expected In October (08 hr(s), 28 min(s), 15 sec(s) ago)
(RTTNews) - Existing home sales in the U.S. rebounded by more than expected in the month of Octobe ...Full Story»

S. Africa Central Bank Holds Rate Steady Again (09 hr(s), 19 min(s), 15 sec(s) ago)
(RTTNews) - South Africa's central bank left its key interest rate unchanged for a second cons ...Full Story»

Growth In Philadelphia Manufacturing Re-Accelerates More Than Expected (09 hr(s), 33 min(s), 15 sec(s) ago)
(RTTNews) - After reporting a continued slowdown in the pace of growth in regional manufacturing a ...Full Story»

Belgium Consumer Confidence Improves For Second Month (09 hr(s), 42 min(s), 15 sec(s) ago)
(RTTNews) - Belgium's consumer confidence improved for a second consecutive month to its highe ...Full Story»

U.S. Weekly Jobless Claims Unchanged At Five-Month High (09 hr(s), 44 min(s), 15 sec(s) ago)
(RTTNews) - The Labor Department released a report on Thursday showing first-time claims for U.S. ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Japan Inflation Data Due On Friday

11/21/2019 - 18:45 PM (RTTNews)
(RTTNews) - Japan will on Friday release October nationwide numbers for consumer prices, highlight ...Full Story>>

Japan Overall Consumer Prices Rise 0.2% On Year In October

11/21/2019 - 18:40 PM (RTTNews)
(RTTNews) - Overall consumer prices in Japan were up 0.2 percent on year in October, the Ministry ...Full Story>>

U.S. Leading Economic Index Drops For Third Straight Month In October

11/21/2019 - 10:47 AM (RTTNews)
(RTTNews) - A report released by the Conference Board on Thursday showed a modest decrease by its ...Full Story>>

U.S. Existing Home Sales Jump More Than Expected In October

11/21/2019 - 10:25 AM (RTTNews)
(RTTNews) - Existing home sales in the U.S. rebounded by more than expected in the month of Octobe ...Full Story>>

S. Africa Central Bank Holds Rate Steady Again

11/21/2019 - 09:34 AM (RTTNews)
(RTTNews) - South Africa's central bank left its key interest rate unchanged for a second cons ...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.