Bundesbank: Macro-financial environment has deteriorated substantially

Germany’s central bank, the Bundesbank, said in a statement on Thursday, “macro-financial environment has deteriorated substantially and major downside risks remain.“

Additional takeaways

There are no signs of a severe slump in real estate prices or of overvaluations receding.

No need to release countercyclical buffers.

Energy crisis, a sharp economic slump and abruptly rising market rates could put the German financial system under pressure.

Rising costs raise future credit risk.

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