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Bundesbank Considers Exit Cost From Non-Standard ECB Policy

  • German central bank faces losses on QE holdings as rates rise
  • Weidmann to present risk provisions, annual report on Thursday
Updated on

The Bundesbank may be about to put a price tag on the European Central Bank’s exit from unconventional stimulus.

The German central bank is bracing for losses that may be triggered when the ECB eventually unwinds its bond-buying program and raises interest rates, and President Jens Weidmann has the opportunity to address the matter when he presents his institution’s annual accounts on Thursday. He signaled as much at last year’s event, when he said “potentially considerable” funds might need to be set aside to absorb the costs of tighter monetary policy.