Private banks warn ECB to looser monetary policy – Berliner Morgenpost

Berlin. Currency war, price bubbles, rising borrowing costs. The German banks warn the European Central Bank (ECB) prior to the Council meeting this Thursday in the case of a further easing of monetary policy, adverse-reaction

“At the end threatens a competitive devaluation, which will have no winners, “said the chief executive of the Association of German banks (BdB), Michael Kemmer. A further opening of the floodgates could in many countries lead to countermeasures.

Negative effects of monetary policy are already visible, the Bundesverband der Deutschen Volksbanken und Raiffeisenbanken declared (BVR). “We see that the savings rate is reduced,” President Uwe Fröhlich said. The property prices in metropolitan areas developed upwards. Even prices for Oldtimer and other investment objects were moving “in absurd heights”. Sparkassen-President Georg Fahrenschon said:

“In the dead end must have the courage to turn around, on full throttle leads to disaster.” It is expected that the ECB will decide this Thursday, the to increase the sum of its securities purchase program from the current 60 billion euros per month. The penalty rate from the current minus 0.3 percent at the same time could be exacerbated. This must pay banks when they park money at the central bank. The ECB wants to move financial institutions to lend more and thus to push the economy and to fuel the low inflation.

( rtr )