German central bank chief Axel Weber has indicated that the European Central Bank will pursue relaxed monetary policies into 2011. The Bundesbank chief also suggesting that he might not be a 'diplomatic' ECB head.
Weber, a leading candidate to take over as ECB chief next year, was quoted by Bloomberg television as saying the ECB should help commercial banks make it through the critical period at the end of the year before deciding when to withdraw exceptional measures taken to support them through the crisis.
'Most of these discussions about the continuation of the exit I think will be focused on the first quarter of 2011,' Weber said.
That suggested the ECB would continue to provide commercial banks with a full allotment of their bids for central bank loans.
Meanwhile, the German central bank governor was asked if he was diplomatic enough to head the ECB after current president Jean-Claude Trichet steps down in October 2011. He is considered a policy 'hawk' due to a consistent focus on battling inflation but some observers say Weber might lack the sense of consensus attributed to another candidate, Italian central bank governor Mario Draghi.
'I think it's very important for central banks to be clearly focused and also, if necessary, to deliver undiplomatic messages to governments,' Weber said.
