German central bank head to resign

FRANKFURT - The German Bundesbank (Central Bank) President Jens Weidmann announced on Wednesday that he would resign for personal reasons.

"I have come to the conclusion that more than 10 years is a good measure of time to turn over a new leaf -- for the Bundesbank, but also for me personally," said Weidmann in a letter to the bank staff.

Weidmann said he had the Federal President of Germany Frank-Walter Steinmeier to dismiss him from office on Dec 31, 2021.

The decision to quit as the head of the German central bank by Weidmann, a conservative and staunch opponent to ultra-loose monetary policy came at a time when inflation is shooting up and economic recovery in the eurozone is still overshadowed by the lingering pandemic.

Weidmann took the reins of the Bundesbank in May 2011 when the eurozone was suffering from an escalating debt crisis. As a key member of the Governing Council of the European Central Bank (ECB), Weidmann was often at loggerheads with his colleagues who voted for a more accommodative monetary policy.

Commenting on Weidmann's decision to resign, the ECB President Christine Lagarde on Wednesday said she respected and regretted it.

"While Jens had clear views on monetary policy I was always impressed by his search for common ground in the Governing Council, by his empathy for his Eurosystem colleagues, and his willingness to find a compromise," Lagarde said in a statement.

In his letter, Weidmann stressed the importance for the Bundesbank to have its "clear, stability-oriented voice" heard.

Weidmann believes it is important "not to look one-sidedly at deflationary risks, but not to lose sight of prospective inflationary dangers either."