ECB comments 'over-interpreted': German minister

27th August 2014, Comments 0 comments

Markets have misinterpreted recent remarks by ECB chief Mario Draghi as hinting at new measures to stave off deflation, German Finance Minister Wolfgang Schaeuble said on Wednesday.

"I know Mario Draghi very well," Schaeuble told the regional daily Passauer Neue Presse in an interview.

"I think he's being over-interpreted," he added.

At a central bank symposium in Jackson Hole, Wyoming, last week, Draghi had said that the ECB was becoming concerned about falling inflation expectations and "will use all available instruments needed to ensure price stability over the medium term."

Financial markets interpreted the comments as a hint at possible quantitative easing, a practice of large-scale purchase of assets used by the other central banks such as the US Federal Reserve to inject funds into the economy.

Stock markets rose strongly on Monday and Tuesday in the wake of Draghi's comments.

© 2014 AFP

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