ECB issues new 'currency war' warning

European Central Bank policymaker Jens Weidmann has warned that putting pressure on central banks to pursue more aggressive monetary policies could spark 'currency wars' in the future.

He highlighted the force Japan's new government has exerted on the BoJ to deliver bolder monetary easing and the actions of Hungary's government as threats to central bank independence, Reuters reports. "Already alarming violations can be observed, for example in Hungary or Japan, where the new government is interfering massively in the business of the central bank with pressure for a more aggressive monetary policy and threatening an end to central bank autonomy. "A consequence, whether intentional or unintentional, could moreover be an increased politicisation of exchange rates," sa...