ECB's Weidmann says that monetary policy has entered dangerous territory

The European Central Bank's (ECB) Jens Weidmann has said that monetary policy has now entered dangerous territory, but that the ECB's scope for rate cuts is not exhausted.

Talking about the ECB's recently introduced forward guidance - which suggests loose monetary policy will be in place for an "extended period" - Weidmann said that period is a "flexible horizon" and tied to economic developments.

At present he believes that the economy, inflation and lending justify low rates. Weidmann said that the move to forward guidance is entirely consistent with the ECB's mandate.