As Jens Weidmann resigned from his position as Bundesbank president and ECB policymaker, ECB President Christine Lagarde commended his devotion and determination to reach a compromise.
"Jens is a good personal friend, and I could always count on his loyalty. While Jens had clear opinions on monetary policy, his search for common ground in the Governing Council, empathy for his Eurosystem colleagues, and inclination to reach a compromise always impressed me," stated Lagarde.
Carsten Brzeski, Head of Global Marco, Ing Bank, said of the decision "this comes at a critical time for the ECB. The hawks are losing an important voice at a time when rising inflationary pressures appear to be fuelling a more balanced inflation assessment than in the summer."
"Even if board member Philip Lane mentioned yesterday that the ECB's forward guidance did not presently justify financial markets' prediction about future rate hikes, there is a strong case for the ECB to remove its emergency stimulus and begin reducing asset purchases from higher inflation prospects, herd immunity, and an economy returning to pre-COVID levels by the end of the year," he said.