Bundesbank: Euro zone budget savings could complicate ECB rate hikes - RTRS

Reuters reporting additional details from Germany’s central bank, Bundesbank (Buba) monthly economic report released on Monday.

Key Quotes:

"There is an increasing risk that the confidence in the sustainability of the state finances of individual countries will be eroded once interest rates rise, threatening to put pressure on monetary policy to counter this."

"If rates on average were still at their pre-crisis levels, interest expense last year alone would have increased by nearly 2 percent of the nominal gross domestic product."

"Since 2008, savings have totaled almost 1 trillion euros or almost 9 percent of euro area GDP."