ECB's Weidmann worried by long-term risks for financial stability
Keeping interest rates too low for too long keeps central bankers awake at night in Germany and India.
The impact on long-term financial stability must be considered, European Central bank governing council member Jens Weidmann said on Tuesday, Market News International reported.
"Monetary policy bears responsibility for ... risks to financial stability if they affect the long-run outlook of price stability or our capacity to ensure price stability in the future," Weidmann said.
"In that sense I share [Rajan's] concerns about monetary policy that's too loose for too long."
He was speaking at a conference held in Frankfurt ahead of a speech by his oppossite number at the Reserve Bank of India, Raghuram Rajan.