Bundesbank Hoards Money Against Losses When ECB Hikes Rates
- German central bank posts 2 billion euro-profit for 2017
- Weidmann calls for end of ECB asset purchases this year
This article is for subscribers only.
Germany’s Bundesbank increased the money it puts aside to cover any losses when the European Central Bank starts to raise interest rates.
The central bank boosted provisions by 1.1 billion euros ($1.4 billion) to 16.4 billion euros at the end of 2017, it said in its annual report published Tuesday. The Bundesbank posted a profit of 2 billion euros for the year, of which it transferred 1.9 billion euros to the government.