Weidmann: ECB has to know limits of monetary policy

FRANKFURT, Oct 8 (Reuters) - Part of the success of central banks is that they recognise their limits instead of embarking on too many tasks during a crisis, European Central Bank Governing Council member Jens Weidmann said on Monday.

"The current crisis puts extraordinary challenges to political decision makers and also on central banks," Weidmann, who heads the German Bundesbank, said in the text of a speech to be delivered at the North Rhine Westphalia Academy of Sciences and Arts in Duesseldorf.

"For central banks, this is tied to significant problems ... there is a threat of overloading central banks."

He said that the road to success was paved with knowing the limits of action.

"One of the secrets of success of an independent central bank was recognition of its limits."

Weidmann, who has vehemently opposed the ECB's new OMT bond-buying programme, said that those who act primarily to pacify financial markets in the short term without paying attention of medium to long-term problems will not be able to achieve stability.

He also said giving central banks financial supervision tasks posed many unanswered questions as the separation of monetary policy and supervision was "difficult" from both an organisational and a legal point of view.

(Reporting by Sakari Suoninen)

((sakari.suoninen@thomsonreuters.com)(+49 69 7565 1267)(Reuters Messaging: sakari.suoninen.thomsonreuters.com@reuters.net))