28.02.2024
In an interview with Germany’s “Handelsblatt” newspaper, Bundesbank Executive Board member Burkhard Balz and Director General Digital Euro Alexandra Hachmeister explain why it is so important for Europe to have a digital currency of its own and why the digital euro is a top priority for the Bundesbank. Besides the geostrategic case for introducing a digital euro, they hope the digital euro will reduce the fees that merchants pay. The Bundesbank also has the issue of preventing money laundering in its sights, they note, with the introduction of a de minimis threshold being discussed in this regard.
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
20.02.2024
House prices in Germany fell significantly in 2023, according to the Bundesbank’s current Monthly Report. Residential properties were no longer affordable for many people owing to high inflation and increased interest rates. Demand for housing declined, increasingly shifting to the rental market, and the already high inflation in rents saw a significant further acceleration,
the economists write. Overvaluations in the real estate market came down in 2023, but were not fully eliminated. The authors therefore believe that there is still a certain risk of price corrections.
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.