European Central Bank rate setter: Tightening monetary policy? We're working on it...

Oliver Gill
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German And French Finance Ministers Meet With Students
Jens Weidmann was speaking at a Bundesbank open day (Source: Getty)

The European Central Bank is mulling a move towards tightening its monetary policy, according to one of the members of its rate-setting committee.

Jens Weidmann, also the head of Germany's central bank, said: "It will hopefully come and we're working on that, we're also discussing it."

Markets are keeping a keen eye out for any indication the ECB may tone down it ultra-easy monetary policy, which includes setting low interest rates and buying up bonds. Earlier this week ECB President Mario Draghi hinted such thinking was on the cards.

Read more: Euro builds on 2017 high on Mario Draghi's ECB taper talk

Speaking at a Bundesback open day Weidmann said the issue for rate setters was when to show resolve and normalise the ECB's policy in the face of pressures to keep it easy longer than necessary.

Yesterday, early estimates of inflation from the European Commission showed consumer prices rose by 1.3 per cent in June, down from 1.4 per cent in May. The news caused the euro to dip and dampened hopes of tighter policy that were starting to build in the wake of Draghi's comments.

Read more: Euro dips against the dollar as Draghi defends easy monetary policy