ECB policymaker defends inflation target

Frankfurt

GERMANY would lose out if the European Central Bank (ECB) abandoned its inflation target while low interest rates are a boon, not just a burden, a top ECB policymaker said on Sunday, responding to a barrage of criticism from German officials.

Without repeated ECB stimulus, economic activity would be subdued, unemployment would be higher and a sound public budget would be more difficult to achieve, even in Germany, ECB executive board member Benoit Coeure said, following weeks of criticism from officials including German Finance Minister Wolfgang Schaeuble.