-Jens Weidmann, Bundesbank Chief
France's industrial production continued to increase in January, beating economists' expectations for a decline. According to the INSEE, French industrial output rose 0.4% in January from the preceding month's 1.4% gain, whereas analysts had called for a 0.3% drop. Measured on an annual basis, industrial production in the Euro zone's second biggest economy increased 0.6% in the measured period, following a revised 0.4% decline in December. Meanwhile, manufacturing production dropped 0.1%, after climbing a revised 1.1% in the previous months, while analysts had predicted a 0.1% gain. In Italy, industrial production declined in January, after climbing for two months in a row, as manufacturing struggled to recover. Industrial output in the Euro zone's third largest economy fell 0.7% on the month in seasonally-adjusted terms, Istat reported.
While the ECB launched its QE programme, which is intended to kick-start economic growth and inflation in the Euro zone, Jens Weidmann, Bundesbank chief and a member of the Governing Council, once again criticized the bond-buying scheme. Weidmann said the plan blurred the lines between monetary and fiscal policy. Bundesbank President reiterated that threat of deflation was too low and did not justify a more expansive monetary policy as deployed by the ECB.
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