Axel Weber, the chairman of UBS, would like to see a strengthening of the independence of central bankers in their monetary policy setting. He also has the interests of his own industry in mind.
Axel Weber evidently still has relatively fresh memories from his spell as head of Germany’s central bank. He argues that central banks should no longer be used as a makeshift for poor decisions by investors or as a repair center for failed public policy, in an interview with «Frankfurter Allgemeine Zeitung» (behind paywall, in German).
Lagarde's Hands Are Tied
The hands of Christine Lagarde, the new chair of the European Central Bank, however, seem already tied by the decisions taken by the bank under the guidance of outgoing Chairman Mario Draghi, Weber noted. The easing measures decided by Draghi will also affect Swiss monetary policy due to the importance of the European market for the Swiss economy.
And that, in turn, will influence Weber’s new business: banking. He sees challenging times ahead for European banks, with mounting pressures. The UBS chairman believes that the European banking industry will have a very tough time trying to recover lost ground against global competitors.
