"We do not interfere in wage negotiations." With these words, Bundesbank President Jens Weidmann responded to media reports to the effect that the Bundesbank had called on German wage-bargaining partners to conclude higher wage agreements. In an interview with the Frankfurter Allgemeine Zeitung, Mr Weidmann emphasised the importance of wage agreements for price stability.
According to Bundesbank findings, exchange rates react in different ways to financial market crises. While no crisis-specific behaviour can be found for the euro, the Swiss franc, US dollar and yen clearly react to heightened tensions on the financial markets. In its July Monthly Report, the Bundesbank shows that exchange rate reactions have various causes.
In an article in the July Monthly Report, Bundesbank economists warn that an ageing population and the rising costs of new medical treatment will put pressure on Germany’s 134 statutory health insurance institutions. The economists emphasise that insurees should be prepared for rising contributions, adding that it is the task of legislators “to keep cost pressures in the healthcare system in check”.
In the Bundesbank's estimation, the economic upsurge distinctly lost momentum in the first two months of the spring quarter. As explained in the July Monthly Report, Bundesbank economists are expecting real GDP to remain at the previous quarter's level in the second quarter.
Representatives from the banking sector and regulatory authorities attended a Deutsche Bundesbank symposium to discuss the latest developments in the world of banking supervision. Bundesbank Executive Board Member Andreas Dombret presented the principles of sound regulation and good supervision to industry representatives and supervisors.
The former governor of the Bank of Japan, Masaaki Shirakawa, has been awarded the Knight Commander's Cross (Badge and Star) of the Order of Merit of the Federal Republic of Germany. Bundesbank Executive Board Member Andreas Dombret was among the speakers at the ceremony in Japan.
The Bundesbank welcomes China's decision to allocate an investment quota of CNY 80 billion to Germany. This quota allows institutional investors from Germany to invest directly on the Chinese capital market. Bundesbank Executive Board member Joachim Nagel sees this as a further milestone on the road towards creating a renminbi trading centre in Frankfurt.
Speaking in Istanbul, Andreas Dombret, member of the Executive Board of the Deutsche Bundesbank, named reform fatigue and complacency as the current biggest threats to the stability of the banking and financial system. He was attending an expert seminar for representatives of the Central Bank of the Republic of Turkey and the Deutsche Bundesbank to learn from each other's experiences.
The Governing Council of the European Central Bank (ECB) has decided to lengthen the interval between its monetary policy meetings. From the beginning of 2015, it will hold the meetings at which it takes its monetary policy decisions every six weeks. The ECB also intends to publish accounts of its meetings in future. At the meeting on 3 July, members of the Governing Council also agreed on further specifics of the targeted longer-term refinancing operations (TLTROs).
Bundesbank President Jens Weidmann has criticised the "full pension at 63" as well as the introduction of the statutory minimum wage. Speaking at the Economic Conference of the Economic Council of the Christian Democratic Union (CDU) in Berlin, Mr Weidmann also stressed how important it was for Germany's economic policy to set an example in Europe. The Bundesbank President furthermore encouraged the countries hit particularly hard by the crisis to press ahead with their reform efforts.