ECB's Weidmann: Recovery from coronavirus crisis will be painfully slow

The recovery from the coronavirus crisis is expected to be "painfully slow, Jens Weidmann, European Central Bank (ECB) Governing Council member and Bundesbank President said on Monday.

Key takeaways

"PEPP should be flexible but not unbound; capital key is a useful benchmark."

"It is important to me that monetary policy does not set the wrong incentives for public finances."

"Policymakers must not assume that we would keep the financing costs of governments low forever or iron out any differences in sovereign risk premia."

Market reaction

The EUR/USD pair largely ignored these comments and was last seen gaining 0.32% on the day at 1.1210.