ECB shouldn't signal next move so soon after cut: Weidmann

Germany's federal reserve Bundesbank President Jens Weidmann poses in his office in the Bundesbank headquarters during a photo shoot with Reuters in Frankfurt May 17, 2013. REUTERS/Kai Pfaffenbach·Reuters
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FRANKFURT (Reuters) - The European Central Bank should not signal any further easing of its monetary policy for now as it has only just cut interest rates, Bundesbank Chief Jens Weidmann said in a newspaper interview published on Wednesday.

The ECB cut interest rates to a record low earlier this month and said it could take them lower still to prevent the euro zone's recovery from stalling after inflation tumbled to 0.7 percent - well below its target of just under 2 percent.

"The Council has only just eased monetary policy further, so I do not think it is sensible to immediately herald the start of the next round," Weidmann told German weekly Die Zeit.

Last week, ECB Executive Board member Peter Praet raised the prospect of the ECB starting to buy assets to bring inflation closer to the target.

(Writing by Paul Carrel)

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