Weidmann criticizes ECB stimulus decisions as Draghi confirms weak economic conditions in Eurozone

President of the Bundesbank Jens Weidmann expressed concern about effectivity of the European Central Bank's new support measures, undertaken earlier during the previous week. In particular, he spoke about the asset purchases program, as well as planned purchases of covered bonds. According to Weidmann, considerable changes in the monetary policy in recent times will gradually lead to distancing from core goals of Central Bank in the Eurozone. There are risks that the ECB is going to buy all securities available, while Mr. Weidmann marked the importance of buying solely low-risks assets; however, there is a probability of deficit among such assets on the market.

The ECB President Mario Draghi, speaking on Monday in the European Parliament, noted that economy of the Eurozone is losing momentum, even though data for July raised some optimism among economists. However, Mr. Draghi assured investors that the ECB will continue implementing new stimulus measures, including the second offering under the TLTRO program in December, as well ABS and covered bonds' purchases. Last week, banks managed to raise 82.6 billion euro from the ECB. These funds are aimed to heat up inflation and economic growth in the region. In addition, Draghi reminded analysts about the important date of November 4, when the Single Supervisory Mechanism will begin working.