Deutsche Bundesbank president Jens Weidmann today argued that, when it comes to handling financial stability risks, monetary policy is a "sledgehammer rather than a scalpel" and that preparing macro-prudential policies should be a matter of priority.

Speaking at the Bundesbank Symposium on Financial Stability and the Role of Central Banks, Weidmann accepted that monetary policy should "attach greater importance to financial sector developments, as risks to financial stability may ultimately