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Financial buffers enable Bundesbank to achieve balanced financial result

23.02.2024

Last year, the Bundesbank’s annual accounts were shaped by the increase in the key interest rates. For the 2023 financial year, the Bundesbank reports a balanced financial result because it was able to use its financial buffers to cushion burdens in the double-digit billions. To this end, the Bundesbank released its risk provisions in full and reduced its reserves. We expect the burdens to be considerable again for the current year. They are likely to exceed the remaining reserves, said Bundesbank President Joachim Nagel at the press conference presenting the Bundesbank’s annual accounts

Financial buffers enable Bundesbank to achieve balanced financial result
Bundesbank President Joachim Nagel presenting the Bundesbank’s Annual Report 2023 ©Frank Rumpenhorst
Period of weakness in the German economy could continue

19.02.2024

German economic output contracted in the final quarter of 2023, according to the February Monthly Report. Weak demand from abroad was still putting a strain on industry, while higher financing costs continued to dampen investment. Bundesbank economists believe that uncertainty about transformation and climate policy is also likely to have weighed on economic activity. Some headwinds will probably persist into the first quarter of 2024 as well. Economic output could therefore decline again somewhat. 

 

Period of weakness in the German economy could continue
A wall ©Adobe Stock / blende11.photo
New National Cash Forum established

16.02.2024

The National Cash Forum has been established on the initiative of the Bundesbank, the being, as Bundesbank Executive Board member Burkhard Balz put it, to preserve cash as an efficient and widely used means of payment in a changing payment landscape. The forum will facilitate close dialogue between the associations of the banking industry, retail trade, consumer protection, the CIT industry, vending machine operators and the Bundesbank. The industry is set to meet here at least once a year. 

National Cash Forum established
Meeting of the National Cash Forum on 16 February 2024 ©Christian Thiel
“Interest rate cuts are premature at the current juncture”

03.02.2024

We currently appear to be administering the correct ‘dose’ of interest rate increases, said Bundesbank President Joachim Nagel in an interview with the Sunday newspaper “Frankfurter Allgemeine Sonntagszeitung”. In his view, the price outlook is not yet clear enough to cut interest rates. However, he does expect price developments to continue to normalise. 

“Interest rate cuts are premature at the current juncture”
Joachim Nagel ©Gaby Gerster