War in Ukraine, supply bottlenecks and inflation weighing on German economy
The German economy recovered slightly in the first quarter of 2022. However, the effects of Russia’s war on Ukraine have been weighing considerably on the economy since the start of the conflict, according to the Bundesbank’s Monthly Report. Supply bottlenecks in industry and construction intensified again, for example, while high energy prices dampened output and reduced household purchasing power. At most, the Bundesbank expects economic output to grow slightly this spring.
Launch of exchange scheme – hryvnia banknotes can be exchanged into euro from 24 May 2022
Following an agreement reached between the Federal Ministry of Finance, the Bundesbank, the German Banking Industry Committee and the National Bank of Ukraine, refugees who have fled the war in Ukraine can exchange hryvnia banknotes into euro in Germany from 24 May 2022.
Nagel: First interest rate moves could follow in a timely manner
Bundesbank President Joachim Nagel has once again advocated making a timely start on normalising policy rates in the euro area. “When net asset purchases come to an end – possibly in June – I see the time for an initial interest rate hike soon afterwards – possibly in July – as having come,” Mr Nagel said at the press conference for the G7 meeting of finance ministers and central bank governors at the Petersberg, near Bonn. He added that they could soon be followed by further interest rate moves.
BaFin and Bundesbank hold BaFinTech industry meeting
Machine learning, artificial intelligence and the digital euro – at the BaFinTech industry meeting, Bundesbank Executive Board members Joachim Wuermeling and Burkhard Balz spoke about the opportunities and risks of the digitalisation of banking business and central bank digital currency. The BaFinTech format was aimed at the financial industry.