ECB's Weidmann: Emergency policy measures must be scaled back after crisis

Jens Weidmann, European Central Bank (ECB) Governing Council member and Bundesbank President, said on Wednesday that the latest round of bond purchases risks weakening the market's ability to discipline governments, per Reuters.

"This problem (of weaker market discipline) in particular has been exacerbated by the recent increase in the PEPP," Weidmann added. "We must be careful that the emergency monetary policy measures do not become permanent. They must be scaled back after the crisis."

Market reaction

The EUR/USD pair showed no immediate reaction to these remarks and was last seen trading at 1.2171, where it was up 0.16% on a daily basis.