If oil prices remain low, German inflation will be lower than expected and growth better than expected, Bundesbank President Jens Weidmann said in an interview with the Frankfurter Allgemeine Zeitung on Sunday.
He said cheap oil will act as a stimulus. The current forecasts do not fully reflect the decline in oil prices, Weidmann noted.
Weidmann, who is also a governing council member of the European Central Bank warned the ECB against buying government bonds. Europe is not as bad as many people believe, he said.
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