Central Banks
Euro Area Braces for Era of Central-Bank Losses After QE Binge
- Bundesbank may be worst hit, with negative equity looming
- Euro-zone rules will probably mean fiscal cost to governments
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The euro area’s central banks will disclose their first significant losses from a decade of money printing in the coming weeks, heralding a new era of scrutiny and the prospect of taxpayer bailouts.
When the European Central Bank reveals annual results on Thursday, officials are expected to warn of big shortfalls this year and next across the region as higher interest rates make the cost of servicing deposits built up through quantitative easing soar.